Can Digital Transformation Improve the Profitability of Rural Commercial Banks
Based on the survey data of 47 rural commercial banks in all counties of Jiangsu Province from 2015 to 2021,this paper constructs a digital transformation evaluation index system for rural commercial banks to examine the impact of digital transformation on the profitability of rural commercial banks.The study finds that,overall,digital transformation improves the profitability of rural commercial banks through the"cost reduction and efficiency enhancement"channel.Considering the stage characteristics for the cost and revenue of digital transformation,the panel threshold model test finds a non-linear relationship between digital transformation and the profitability of rural commercial banks that is first inhibited and then promoted.Heterogeneity analysis shows that the effect of digital transformation on the profitability of small-scale rural commercial banks is mainly in the same period,and the impact is gradually weakened,while the effect on the profitability of large-scale rural commercial banks is mainly in the long term,and the impact is gradually increased.Further discussion reveals that digital transformation has a significant effect on the profitability of rural commercial banks located in areas with high level of digital access and insignificant effect on the profitability of rural commercial banks located in areas with low level of digital access.The findings of the study have certain policy implications for promoting the high-quality and sustainable development of rural finance.
Digital TransformationRural Commercial BanksProfitabilityFintech
NETL
NSTL
万方数据
