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Financial regulation, digital currency, and risk management

Author

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  • Zeng, Wei
  • Tu, Yongqian
  • Juan, Xin
  • Tian, Grace (Li)

Abstract

Using data from 31 Chinese provinces and municipalities from 2011 to 2022, this study examines the impact of stringent financial regulations and digital currency on regional risk management. Results reveal that stringent financial regulation promotes regional risk management levels, the development of digital currency can improve regional risk management levels, strict financial regulation acts as a moderator in the relationship between digital currencies and risk management, and the development of digital currency has a threshold effect on regional risk management levels. This study empirically verifies the positive function of stringent financial regulation and digital currency development in improving regional risk management, providing policymakers a scientific foundation.

Suggested Citation

  • Zeng, Wei & Tu, Yongqian & Juan, Xin & Tian, Grace (Li), 2025. "Financial regulation, digital currency, and risk management," Finance Research Letters, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005422
    DOI: 10.1016/j.frl.2025.107279
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    References listed on IDEAS

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