Author(s)

Rusha Deng

Institute of Finance, Jiangxi University of Finance and Economics, Nanchang, China.

Using the data of SMEs in Chinese market from 2010 to 2021 as research samples, this paper focuses on the impact of commercial banks’ digital transformation on the transmission efficiency of monetary policy to SME financing and the role of banks’ risk-taking. The results show that the digital transformation of commercial banks can significantly improve the transmission efficiency of monetary policy to SME financing, and promote SMEs’ bank loan supply and loan interest rate to adapt to the objectives of monetary policy regulation. Heterogeneity test shows that the impact of digital transformation of commercial banks on the transmission efficiency of monetary policy presents heterogeneity among enterprises with different property rights and growth characteristics and regions with different marketization degrees and financial development levels. Moreover, the strengthening effect on the transmission efficiency of monetary policy is more obvious in private enterprises, high-growth enterprises, enterprises in areas with higher degree of marketization and enterprises in areas with lower level of financial development. The transmission channel test shows that the strengthening effect of the digital transformation of commercial banks on the transmission efficiency of monetary policy is realized by influencing the risk-taking of banks. The findings remain robust after replacing key explanatory variables, adjusting model estimation methods, and controlling for the influence of financial development level. The research conclusions of this paper have important policy implications for promoting the digital transformation of commercial banks and improving the transmission efficiency of monetary policy, so as to promote the digital transformation of commercial banks to better alleviate SMEs’ financing problems.

Digital Transformation, Monetary Policy, Bank Risk-Taking, SME Financing

Deng, R. (2023) Digital Transformation of Commercial Banks, Monetary Policy Transmission Efficiency and SME Financing: Empirical Evidence from the Chinese Market. Modern Economy, 14, 999-1028. doi: 10.4236/me.2023.147053.