Abstract
Against the backdrop of financial technology empowering the transformation of commercial banks, this paper uses panel data from 38 commercial banks in China between 2012 and 2020, and constructs a financial technology index using text mining techniques, to investigate the mechanism of fintech empowerment in commercial banks. The study found a significant positive "U" -shaped relationship between the level of bank fintech and profitability. The results of the examination indicate that fintech has a stronger positive impact on the profitability of small and medium-sized local state-owned banks, and that fintech affects bank profitability through risk-bearing, capital structure, and operational capabilities. This paper takes the risk-bearing ability, capital structure, and operational level of commercial banks as intermediate variables in the model, and controls for variables through macroeconomic environment and policy, and internal factors of commercial banks, to make the research results more convincing. This provides new research ideas for the study of systematic fintech theory and financial risk theory.
Published Version
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