Technology, regulation, and the transformation of bank deposit business in China

IF 5.2 1区经济学 Q1 ECONOMICS

中国经济评论 Pub Date : 2025-07-12 DOI:10.1016/j.chieco.2025.102497

Xinyu Ge , Yan Liu , Yutong Yang

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Abstract

During the past decade, technology innovations and regulatory reforms have been swiftly transforming deposit business in China’s banking sector. To understand the transformation, this paper first constructs a model incorporating both large and small banks, as well as a FinTech sector, to analyze how technological and regulatory shocks impact bank deposit business. The paper then systematically examines the evolution of business practices and the differential responses of banks with varying sizes to three major shocks: the launch of Yu’e Bao in 2013, the full marketization of deposit rates in 2015, and the massive shadow banking regulation in 2017. Consistent with the model, large banks accelerate digital transformation and expand wealth management products following FinTech competition, while small banks compete more aggressively on deposit rates. The effectiveness of these strategies varies with market structure: large banks’ digital initiatives are more pronounced in regions with higher FinTech penetration, while small banks engage in more aggressive deposit rate competition in less concentrated markets. Our findings provide a comprehensive account of the evolution in the banking sector, with various policy implications in navigating the ever-evolving financial landscape in China.

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中国银行存款业务的技术、监管与转型

在过去十年中，技术创新和监管改革迅速改变了中国银行业的存款业务。为了理解这种转变，本文首先构建了一个包含大银行和小银行以及金融科技部门的模型，分析技术和监管冲击如何影响银行存款业务。然后，本文系统地考察了商业实践的演变以及不同规模银行对三次重大冲击的不同反应：2013年余额宝的推出，2015年存款利率的全面市场化，以及2017年大规模影子银行监管。与该模式相一致的是，大银行在金融科技竞争后加速数字化转型，扩大理财产品，而小银行在存款利率方面的竞争更为激烈。这些策略的有效性因市场结构而异：大型银行的数字化举措在金融科技普及率较高的地区更为明显，而小型银行在不太集中的市场中进行更积极的存款利率竞争。我们的研究结果全面描述了银行业的演变，并为应对中国不断变化的金融格局提供了各种政策启示。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

中国经济评论 ECONOMICS-

CiteScore

10.60

自引率

4.40%

发文量

380

期刊介绍： The China Economic Review publishes original works of scholarship which add to the knowledge of the economy of China and to economies as a discipline. We seek, in particular, papers dealing with policy, performance and institutional change. Empirical papers normally use a formal model, a data set, and standard statistical techniques. Submissions are subjected to double-blind peer review.