Experiment data & codes

The rapid advancement of digital transformation has become a critical driver of financial development and support for the real economy. This study investigates the impact of digital transformation on liquidity hoarding by analyzing panel data from 178 commercial banks between 2010 and 2023. Through empirical analysis, we identify the mechanisms through which digital transformation shapes banks’ liquidity management. Our findings reveal that digital transformation significantly reduces liquidity hoarding, a result that remains robust even after controlling for potential endogeneity. Specifically, digital transformation reduces liquidity hoarding by enhancing banks' risk management capabilities. Furthermore, the decline in liquidity hoarding enhances the inclusiveness of banking services, particularly among institutions with larger asset bases and stronger capital management. This study offers theoretical implications for the efficient allocation of financial resources to the real economy and offers policy insights into promoting sustainable and stable economic growth.