Fintech,Bank Risks,and Business Performance:From the Perspective of Inclusive Finance

Recent years have seen an increasing integration of fintech and inclusive loans,leading to significant changes in banking business models and operations.The paper analyzes the impact of fintech on bank risks and performance.The research findings show the following results.First,fintech has made banks more willing to issue inclusive loans.Second,by leveraging fintech,banks have lowered the risks associated with inclusive loans and improved their performance,particularly manifested by inclusive loans to small and micro enterprises.Third,in regard to financial geographic heterogeneity,with the increasing distance between branches and sub-branches,and head office,fintech,as an effective regulating tool,can help to improve the inclusive loan operations and risk control capabilities of remote branches and sub-branches.This paper argues that digital financial inclusion contributes to the stable operation of banks;banks can take advantage of fintech to digitalize and intelligentize financial inclusion,thereby improving business efficiency,reducing risk exposures and expanding profitability.Therefore,banks should adhere to the“prudent and stable”risk appetite and“small and decentralized”credit granting principle to make safe,convenient and impartial inclusive finance services available to a variety of market entities.When implementing the inclusive finance development strategy,head office should consider different results among branches and sub-branches due to their varied financial geographic locations,and release differentiated assessment and incentive policies to branches and sub-branches based on economic regions in a bid to minimize policy spillovers.

Analysis on Formation Causes of Interest Rate Risks of Commercial Banks in China

Economy globalization inevitably requires financial globalization. The interest rate （IR） is decided by the market, which will bring about IR risks to commercial banks （CBs）. This paper discusses the inevitability of fulfilling market IR in China and what IR risks Chinese CBs have to burden. It also analyzes the formation causes of IR risks from the exterior and the interior aspects.

Central bank digital currency,loan supply,and bank failure risk:a microeconomic approach

Central bank digital currencies(CBDCs),which are legal tenders in digital form,are expected to reduce currency issuance and circulation costs and broaden the scope of monetary policy.In addition,these currencies may also reduce consumers’need for conventional demand deposits,which,in turn,increases banks’loan provision costs because deposits require higher rates of return.We use a microeconomic banking model to investigate the effects of introducing an economy-wide,account-type CBDC on a bank’s loan supply and its failure risk.Given that a CBDC is expected to lower the cost of liquidity circulation and become a strong substitute for demand deposits,both the loan supply and the bank failure risk increase.These increases are countered by subsequent increases in the rates of return on term deposits and loans,which,in turn,reduce the loan supply and thus bank failure risk.These offsetting forces lead to no significant change in banking,as long as the rate of return on loans is below a certain threshold.However,once the rate is above the threshold,bank failure risk increases,thereby undermining banking stability.The problem is more pronounced when the degree of pass-through of funding costs to the loan rate is high and the profitability of a successful project is low.Our results imply that central banks wishing to introduce an economy-wide,account-type CBDC should first monitor yields on bank loans and consider policy measures that induce banks to maintain adequate liquidity reserve levels.

New Basle Capital Agreement and Risk Management of China＇s Banking Industry

Adjustment of Basle Capital Agreement will influence the risk management and capital arrangement demand of the banks with different scales, operation level and environment. It will have widespread and profound effect on the competition strength of every country＇s banks in the global market. Starting with illustration of the present cond（tion of risk management in China＇s banks, the paper analyzes the major problems existing in the risk management system of China＇s banking industry, then puts forward some clues and suggestions to improve and better the risk management system of China＇s banking industry.

A Research on the Online Bank＇s Risk

Bank＇s business has taken many changes with the development of computer technology and economic globalization, and has faced fierce competition. Effectively countering such challenge and making profit has been the main task for the bank to survive and develop. Online bank as a new business entity, compared with the entity bank, has its own character and virtual effect that causes online bank＇s business activity totally different from common sense, which produces many new risks which never encounter in real condition. Based on the analysis of the risks online bank facing when doing business on the net, this paper brings forward to some advice on how to perfect online bank＇s business activity and improve transaction efficiency.

The Study on Integrated Risk Management of Chinese Commercial Banks

Integrated risk management becomes gradually mainstream in worldwide. With China being a member of WTO, it put forward a higher requirement for risk management of Chinese commercial banks. So, it＇s of theoretical and practical meaning to study the integrated risk management of Chinese commercial banks. Under the guidance of integrated risk management, it pointed out the identification scope, analysis methods and systematic control strategies of risk management in Chinese commercial banks.

Taming Wild Banking Risks

Banking regulator keeps a watchful eye on Chinese banks to fend off threats as their credit ratings come into question Intermational credit rating agency Fitch Ratings warned 16 Chinese banks

Corporate governance impact on banking risk

This study aims to determine the relationship between several factors of governance and the level of risk in 10 Tunisian banks during an analysis period of eight years.We propose an important empirical question and examine the internal mechanisms of governance aimed at reducing financial risks.This estimation is based on a model with a single equation that examines variables relative to governance and credit risk to determine their impact on banking financials.Results demonstrate that the internal mechanisms of governance present diverging effects on the financial risk of the Tunisian banks in our case study(i.e.,credit risk).Moreover,making applications work by putting together a process and model for banking risk is important.This model can be applied in any bank,and the results can be used to make decisions in real time.

Funding Liquidity and Bank Risk-Taking:Empirical Evidence from China

Liquidity risk has a significant impact on the prudent operation of financial institutions and the stability of fi nancial system.Funding liquidity risk has played an important role in banking crises in history.This paper uses the data of 338 commercial banks in China from 2002 to 2016 to analyze the relationship between funding liquidity and bank risk-taking.The findings show that:(1)Banks with lower funding liquidity risk take more risks,which is evidenced by lower Z-score and capital adequacy ratio,as well as higher risk-weighted asset ratio and liquidity creation.(2)Funding liquidity risk has an impact on the factors of bank risks.Lower funding liquidity risk increases bank profitability and reduces capital level.(3)Funding liquidity risk can affect bank risk-taking behavior through the intermediary effect of bank loans.(4)With a lower funding liquidity risk,larger asset and higher leverage ratio can restrain banks from taking more risks,and the banks can take less risks during the international fi nancial crisis or higher economic risk periods.

Existing contradictions and problems in China’s current economic and social development

Since the 18th National Congress of Communist Party of China(CPC),China has made important achievements and headway in economic and social development.However,now more than ever the focus should be on the conflicts and problems that continue to exist in China’s economy.This paper examines six of them:(1)lack of a firm foundation for sustaining steady economic growth;(2)risks and hidden dangers in the financial,banking,and real estate sectors and massive overcapacity in some industries;(3)increasing difficulty in increasing agricultural production and raising rural incomes;(4)severe air,water,and soil pollution in certain regions and the arduous task of energy conservation and emissions reduction;(5)major structural problems constraining employment;and(6)issues of people’s livelihood that have been the source of dissatisfaction for many Chinese citizens.