Philippine Christian University, Manila, Philippines
With the rapid development of information technology, digitization has become an important trend in economic and social development. As an important component of the digital economy, digital finance (DF) has the characteristics of convenience, efficiency, and inclusiveness, and has received high attention from governments and financial institutions in various countries. The impact of DF development on regional financial risks is receiving increasing attention. This article explored the impact and mechanism of DF development on regional financial risks from the perspective of DF development, and further analyzed the inspiration of DF development on regional financial risk management. This article conducted empirical research through experimental and control groups. The results indicated that in mature digital financial markets, digital financial services could to some extent improve service utilization and reduce regional financial risks. In areas where the digital financial market was relatively underdeveloped, there was a higher level of regional financial risk. At the same time, the development of DF also faced issues such as information security and regulatory deficiencies. It was necessary to strengthen regulation and risk management to promote the healthy, stable, and sustainable development of DF. Therefore, while promoting economic development and social progress, DF also needed to pay attention to management and governance issues to ensure the sustainable development of DF.
Regional Financial Risks, Digital Finance, Impact Mechanisms, Risk Management, Support Vector Machines
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