Has Public Policy - driven Digital Transformation of Banks Reduced Bank Risk? —— Evidence from Bank of China

In recent years, with the rapid development of digital technology, the digital transformation of banks has been widely mentioned. As the main direction of the future development of commercial banks, the success of the digital transformation of banks is directly related to the future development of banks and the level of bank risk. China's bank digital transformation has a certain scale at present, in-depth analysis of the deficiencies in the digital transformation of banks, from which measures to promote the digital transformation of banks can be proposed, which is very beneficial to the development of China's banks themselves, thus helping to promote China's economic development. Based on the data of commercial banks from 2012 to 2021, the findings of this paper show that: (1) the digital transformation of banks has an inverted U-shaped impact on the risk-taking of banks, which first rises and then falls; (2) the digital transformation of banks does not have a significant impact on the risk-taking of state-owned banks, i.e., the digital transformation of banks plays a role in reducing the risk-taking of state-owned banks (3) digital transformation of banks has an inverted U-shaped impact on non-state-owned banks' risk-taking, with an increase followed by a decrease.