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The level of digitalization in Commercial banks and bank liquidity creation

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  • Xu, Chenxi
  • Yang, Lingyan

Abstract

This paper takes all banking enterprises among Chinese listed companies as the research sample and examines the impact of the level of digitalization in commercial banks on bank liquidity creation through constructing an empirical econometric model. The research results show that the level of digitalization in commercial banks can significantly enhance the level of bank liquidity creation. Additionally, the results of heterogeneity tests indicate that the effect of commercial banks' digitalization level on the enhancement of bank liquidity creation varies with the size of the commercial banks and the degree of integration between industry and finance.

Suggested Citation

  • Xu, Chenxi & Yang, Lingyan, 2024. "The level of digitalization in Commercial banks and bank liquidity creation," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003106
    DOI: 10.1016/j.frl.2024.105280
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    References listed on IDEAS

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    1. Hamid Mehran, 2011. "Bank Capital and Value in the Cross-Section," The Review of Financial Studies, Society for Financial Studies, vol. 24(4), pages 1019-1067.
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    4. Hao, Jing & Peng, Mengzu & He, Wenjia, 2023. "Digital finance development and bank liquidity creation," International Review of Financial Analysis, Elsevier, vol. 90(C).
    5. DeYoung, Robert & Lang, William W. & Nolle, Daniel L., 2007. "How the Internet affects output and performance at community banks," Journal of Banking & Finance, Elsevier, vol. 31(4), pages 1033-1060, April.
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