Welcome to Francis Academic Press

International Journal of Frontiers in Engineering Technology, 2021, 3(8); doi: 10.25236/IJFET.2021.030804.

The Influence of Digital Finance Development on the Operating Performance of China's Commercial Banks


Jianzhong Lei, Yao Li

Corresponding Author:
Jianzhong Lei

School of Mathematics and Finance, Hunan University of Humanities, Science and Technology, Loudi 417000, China


Taking China's listed commercial Banks as the object of study, using their financial datas from 2014 to 2018, selecting net loan deals and third-party payment transaction scale growth as independent variables, which measure digital level of financial development. profitability and growth rate of non-performing loans to assets as dependent variables, which measure commercial banks operating performance characterization. by establishing the panel data model. To empirically test the impact of digital finance development on the operating performance of China's commercial banks. The empirical results show that the development of digital finance can not only improve the profit margin of commercial banks' assets, but also help reduce their non-performing loan ratio to improve the performance of commercial banks.


Digital finance, Commercial bank, Business performance, Panel data model

Cite This Paper

Jianzhong Lei, Yao Li. The Influence of Digital Finance Development on the Operating Performance of China's Commercial Banks. International Journal of Frontiers in Engineering Technology (2021), Vol. 3, Issue 8: 20-24. https://doi.org/10.25236/IJFET.2021.030804.


[1] Itay G, Wei J, Andrew K G. To FinTech and beyond [J]. Review of Financial Studies, 2019, 32(5):1647-1661.

[2] Zhang Xun, Wan Guanghua, Zhang Jiajia, He Zongyue. Journal of economic research, 2019, 54 (08):71-86.

[3] Song XIAolin. Empirical Test of digital inclusive finance narrowing urban-rural income gap [J]. Finance and Economics Science, 2017 (06):14-25.

[4] Fu Qiuzi, Huang Yiping. The heterogeneous impact of digital finance on rural financial demand: Evidence from Chinese household Finance Survey and Peking University Digital Financial Inclusion Index [J]. Financial Research, 2018(11):68-84.

[5] Huang Rui, Lai Xiaobing, Tang Song. How does fintech affect corporate financing constraints? -- Dynamic effect, heterogeneity and macro and micro mechanism test [J]. Journal of International Finance, 2020(06):25-33.

[6] Tang Song, Wu Xuchuan, Zhu Jia. Digital finance and technological innovation: Structural characteristics, mechanism recognition and effect difference under financial regulation [J]. Management world, 2020, 36(05):52-66+9.

[7] Xie Hua-hua, SHEN Yan, ZHANG Hao-xing, GUO Feng. Can digital finance boost entrepreneurship? Evidence from China [J]. Economic quarterly, 2018, 17(04):1557-1580.

[8] Yi X J, Zhou L.Whether the development of digital inclusive finance has a significant impact on household consumption: evidence from Chinese households [J]. Financial Research, 2018(11):47-67.

[9] Xie Ping, Zou Chuanwei. Financial Research, 2012, 000(012):11-22.

[10] Liu Lanbiao, Shen Xin, Guo Buchao. Economic Trends, 2013, 000(008):73-83.

[11] Wu Fei, Xiang Hai-ling, Liu Xin-yi. Digital finance and financial market stability: From the perspective of stock price collapse risk [J]. Economist, 2020(10).

[12] Zheng Zhilai. The Influence path of Internet Finance on China's Commercial Banks -- Based on the perspective of "Internet +" influence on retail industry [J]. Science of Finance and Economics, 2015, 000(005):34-43.

[13] Feng Sixian, Guo Renjing. Digital Finance, bank competition and bank efficiency [J]. Reform, 2019, No .309(11):75-89.