A Study of the Impact of Digital Transformation on the Stability of Banks

This paper aims to quantify the level of digital transformation of commercial banks by big data mining and employ a multiple linear regression statistical model to verify the correlation between digital transformation and the stability of banks.By analyzing the unbalanced panel data of 42 Chinese listed commercial banks from 2013 to 2021, we found that the digital transformation of commercial banks can improve the stability of banks significantly, and this conclusion remains valid after considering potential endogenous problems.Capital regulation can enhance the impact of digital transformation on commercial bank stability.