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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. Douglas W. Diamond & Philip H. Dybvig, 2000. "Bank runs, deposit insurance, and liquidity," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 24(Win), pages 14-23.
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    Cited by:

    1. Japan Huynh, 2025. "Digital Transformation and Bank Liquidity Creation: Evidence From a Bank-Based Market," SAGE Open, , vol. 15(4), pages 21582440251, October.
    2. Sun, Wujun & Zhai, Yujia & Li, Ruihai & Wang, Xuewu, 2025. "The extreme event of climate change: How digital transformation affects the performance of commercial banks?," Energy Economics, Elsevier, vol. 150(C).

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