In recent years,China's commercial banks have implemented retail transformation strategies,and the impor-tance of retail business has significantly increased.Risk management remains an enduring theme for commercial banks,as the risk-taking behavior of these banks has a significant impact on both financial stability and real economic development.In this context,this paper examines the impact of the retail business on bank risk-taking.Based on unbalanced panel data from 434 Chinese commercial banks spanning from 2008 to 2021,this paper measures bank risk-taking using Z-score.It also constructs retail transformation indicators that comprehensively reflect banks'retail de-posit and retail loan businesses.Based on these indicators,the paper empirically examines the impact of retail business on bank risk-taking.The results show that the retail business can significantly reduce bank risk-taking.Heterogeneity analysis shows that the risk-reduction effect of retail business is more pronounced for larger banks,those with a lower capital adequacy ratio,and banks with a higher degree of fintech development.The analysis of the impact channels shows that the retail business can en-hance banks'profitability and capital adequacy while reducing the volatility of banks'earnings.As a result,it has a mitigating effect on bank risk-taking.Differentiating between various types of retail businesses,it's found that retail deposits,personal consumption loans,and other personal loans can significantly reduce banks'risk-taking.In addition,this paper finds that there is a negative relationship between the quality of retail business and the level of bank risk-taking.The paper assesses the economic consequences of retail business in commercial banks and has significant implications for the high-quality development of retail business in China's commercial banks.Firstly,banks should prioritize the strategic posi-tion of retail business.Secondly,banks should consider their own unique circumstances to tailor the development of retail busi-ness.Thirdly,banks should leverage fintech tools to empower the growth of retail business.
万方数据
维普
