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BIMSA Digital Economy Lab Seminar
Bank Digital Transformation and Monetary Policy Credit Transmission Efficiency
Bank Digital Transformation and Monetary Policy Credit Transmission Efficiency
Organizers
Speaker
Time
Friday, May 23, 2025 3:00 PM - 4:00 PM
Venue
A3-2a-302
Online
Zoom 637 734 0280
(BIMSA)
Abstract
Digital technology enables the digital transformation of banks and profoundly changes the external environment in which monetary policy operates. Based on commercial bank data from 2010 to 2021 in China, this paper studies the impact of bank digital transformation on monetary policy credit transmission and its mechanisms. It finds that the digital transformation of banks has significantly weakened the credit transmission efficiency of monetary policy, thereby reducing the credit control power of monetary policy. From the mechanism perspective, the weakening effect of the increase in bank risk-taking capacity and the reduction of financial frictions due to the digital transformation of banks on the credit transmission efficiency of monetary policy is greater than the improvement effect of increased bank competition on the credit transmission efficiency of monetary policy. Additional investigation finds that the digital transformation of banks weakens the credit transmission efficiency of monetary policy more obviously in small banks, and promote the short-termization of new loans, but it will improve the transmission efficiency of interest rate channel. This study provides important implications for improving the transmission efficiency of monetary policy in context of financial digitalization.
Speaker Intro
Meiyi Wang is a PhD student at BIMSA and UCAS.Her research interests focus on digital economy, international finance, and AI-driven driving technologies.