As the pivotal component of China's financial system,commercial banks have been actively driving their own digital transformation in the process of new technology revolution.In addition to enhancing operational efficiency,the digitaliza-tion of banks may exert an influence on liquidity and,consequently impact systemic risk.This study aims to investigate this is-sue from the perspective of heterogeneous banks.By constructing a theoretical model incorporating heterogeneous banks,this study demonstrates and analyzes the non-linear relationship between the digital transformation of banks and systemic risk.Based on this foundation,panel data from 73 Chinese commercial banks spanning from 2015 to 2021 is utilized to validate the theoretical findings.The results indi-cate a U-shaped asymmetric association between banks'digital transformation and systemic risk.Heterogeneity analysis re-veals that the impact of digital transformation on risk is only significant for small and medium-sized banks,while large banks'digital transformation does not exert a substantial influence on systemic risk.Furthermore,the in-depth analysis reveals that the strategic digitalization of banks effectively mitigates systemic risk,whereas business digital transformation exhibits a signifi-cant non-linear impact on systemic risk.Moreover,there is no discernible causal relationship between management digital transformation and systemic risk.This paper not only examines the impact of digital transformation on systemic risk,but also investigates its influence on systemic risk through bank business digitalization.It establishes a U-shaped relationship between digital transformation and systemic risk,thereby expanding the scope of related research.Moreover,this study represents the pioneering attempt to em-ploy interbank market data for assessing systemic risk in small and medium-sized banks.In contrast to existing literature,this research not only effectively quantifies systemic risk in listed banks but also extends the measurement of systemic risk to non-listed banks,thereby expanding the scope of relevant studies on systemic risk assessment.The findings of this study offer theoretical and empirical support for financial regulatory authorities and commercial banks in navigating the new development paradigm.
Systemic RiskDigital TransformationSmall and Medium-Sized BanksLiquidity
NETL
NSTL
万方数据
