The impact of digital financial inclusion on bank performance: An exploration of mechanisms of action and heterogeneity.

ABSTRACT: The use of digital technology by banks and other financial institutions to facilitate financial inclusion is referred to as digital financial inclusion. This fusion of digital finance and traditional banking methods has the potential to impact banks' operational effectiveness. This study uses the panel effects model to examine the link between digital financial inclusion and bank performance in 30 Chinese provinces from 2012 to 2021. This research uses kernel density estimation to examine the spatial-temporal growth patterns of both variables. The mediator variable in examining how digital financial inclusion affects bank performance is risk-taking. Finally, the paper analyses the regional heterogeneity of the impact. It presents the following conclusions: (1) In China, digital financial i

SUBMITTER: Zhao J 

PROVIDER: S-EPMC11335120 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature