Abstract

This paper studies how the digital transformation affects the monetary policy on the risk-taking mechanism of banks. It is found that moderately loose price-based and quantitative-based monetary policies can expand bank risk-taking, and the digital transformation weakens the monetary policy's regulation mechanism on bank risk, compared with city commercial banks, agricultural commercial bank and other small and medium-sized banks, state-owned, joint-stock and other large banks can more ease the impact of internet finance on the monetary policy control mechanism. The conclusion of this paper can provide reference for making macro-monetary policy and mitigating bank risk.

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