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COVID-19, Digital Transformation of Banks, and Operational Capabilities of Commercial Banks

Author

Listed:
  • Yongjie Zhu

    (College of Business, Gachon University, Seongnam 13120, Republic of Korea)

  • Shanyue Jin

    (College of Business, Gachon University, Seongnam 13120, Republic of Korea)

Abstract

The development of financial technology has promoted the innovation and digital transformation of commercial banks. Through digital transformation, commercial banks can improve bank efficiency and operational capabilities. Through empirical analysis, this study explored the relationship between digital bank transformation and commercial bank operating capabilities and how COVID-19, bank categories, and enterprise life cycles affect the relationship between digital bank transformation and commercial bank operating capabilities. This study selected data from China’s commercial banks from 2011 to 2021 and used the regression method of fixed effects to conduct an empirical analysis. The research results show that the digital transformation of banks has improved the operational capabilities of commercial banks. Further analysis showed that the emergence of COVID-19 has negatively affected their relationship. At the same time, compared with rural commercial banks and commercial banks in the recession and phase-out periods, non-rural commercial banks and commercial banks in the growth and maturity stages play a more vital moderating role in the impact of the digital transformation of banks on the financial performance of commercial banks. The main research object of this study is Chinese commercial banks, and this study examines the results of banks’ digital transformation and enriches the research on digital transformation. At the same time, this study is helpful to investors who like investment banks and has good practical significance.

Suggested Citation

  • Yongjie Zhu & Shanyue Jin, 2023. "COVID-19, Digital Transformation of Banks, and Operational Capabilities of Commercial Banks," Sustainability, MDPI, vol. 15(11), pages 1-17, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:8783-:d:1158857
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    References listed on IDEAS

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    Cited by:

    1. Zhu Yongjie & Jin Shanyue, 2025. "The Impact of Bank Digital Transformation on the Financial Performance of Commercial Banks," SAGE Open, , vol. 15(3), pages 21582440251, August.
    2. John K. Thuranira & Mukaria H. Kimathi & Dennis K. Murithi, 2024. "Digital Banking Channels, Financial Inclusion and Commercial Bank Sustainability in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(15), pages 164-180, November.
    3. Shouchao He & Zhi Jin & Yuanxiao Hong & Lindong Ma & YE Jiang & YuJing Chen, 2025. "The Impact of Digital Transformation on Commercial Banks’ Business Performance: An Empirical Study of 39 Listed Commercial Banks," SAGE Open, , vol. 15(4), pages 21582440251, November.
    4. Zeguo Qiu & Yunhao Chen & Hao Han & Tianyu Wang, 2024. "Research on Digital Technology to Promote Low-Carbon Transformation of Manufacturing Industries Under the Perspective of Green Credit: An Evolutionary Game Theory Approach," Sustainability, MDPI, vol. 16(24), pages 1-27, December.
    5. Hui Zhou & Lin Xu, 2023. "Bank Digital Transformation and Enterprise Innovation—Evidence from China," Sustainability, MDPI, vol. 15(22), pages 1-25, November.

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