Impact Of Digital Inclusive Finance Development on The Resistance to Credit Risk in The Financial Industry

Zhouxin Jin

doi:10.54097/srx78256

Authors

Zhouxin Jin

DOI:

https://doi.org/10.54097/srx78256

Keywords:

Digital inclusive finance, Credit risk, non-performing loan ratio.

Abstract

The rise of digital inclusive finance has thrown a real curveball at the traditional, bank-dominated financial system. The proliferation of digital inclusive finance has precipitated a paradigm shift within the conventional banking sector. This study investigates the influence of digital inclusive finance expansion on the mitigation of credit risk within the financial industry. The research employs panel data from 29 Chinese provinces spanning 2011 to 2022 and identifies the critical threshold. The findings indicate that the advancement of digital inclusive finance curtails credit risk, a conclusion substantiated by robustness tests. Furthermore, the efficacy of digital inclusive finance in mitigating credit risk is contingent upon regional financial development levels. The impact of digital inclusive finance on credit risk demonstrates heterogeneity across regions. Consequently, the study advocates for the strategic promotion of digital inclusive finance, the customization of financial strategies to regional contexts, and the optimization of resource allocation.

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