Will Off-Balance-Sheet Business Innovation Affect Bank Risk-Taking under the Background of Financial Technology?

Given the rapid development of financial technology, off-balance-sheet business innovations banks may potentially impact bank risk-taking. This issue is great importance to commercial and regulators. paper analyzed relationship between innovation (OBI) Bank Risk-Taking (BRT) in Chinese banks, as well mediation role Agency Cost (BAC), a bank’s Internal Control Quality (ICQ) on this relationship, moderating Competition (BCMP) by analyzing panel data from sample 130 2009 2019. The results empirical exercise showed that (1) OBI has significant negative correlation with BRT, evidencing can improve risk management processes enhance operating performance, thereby reducing their willingness transfer risks, restraining BRT level. Compared state-owned joint-stock more inhibitory effect urban rural banks. (2) BAC levels. inhibit levels reduction, demonstrating an effective channel. (3) degree BCMP displayed positive moderation explained explanatory variables, which means that, at higher levels, becomes significant. (4) Additionally, also found ICQ BRT. research contributions constitute important theoretical significance reference value for researchers exploring mechanisms banking industry give supervision system control.