Title: Research on financial systemic risk in the digital era and its dual pillar regulatory framework

Authors: Anan Zheng

Addresses: Business School, Shanghai Jian Qiao University, Shanghai, 201306, China

Abstract: To address the issues of elevated inaccuracy levels, prolonged verification durations, and diminished efficacy in risk management associated with conventional approaches, a financial systemic risk in the digital era and its dual pillar regulatory framework construction method are proposed. Analyse the impact of systemic financial risks on financial stability, combined with financial system risk measurement indicators such as CoVaR and Sharply value are used to identify financial system risks in the digital era. Based on the identification results of financial systemic risks in the digital era, a dual pillar regulation framework is constructed to achieve financial systemic risk regulation in the digital era from the perspectives of monetary policy and macro prudential policy. After experimental testing, it was found that the average risk misreporting rate of this method is 3.02%, the recognition time range is 0.21~0.63 s, and the average success rate of risk control is 96.17%.

Keywords: digital era; financial systemic risk; dual pillar regulatory framework; risk measurement indicators; identify financial system risks; monetary policy; macro prudential policy.

DOI: 10.1504/IJNVO.2025.145375

International Journal of Networking and Virtual Organisations, 2025 Vol.32 No.1/2/3/4, pp.102 - 118

Received: 24 Jun 2024
Accepted: 22 Sep 2024
Published online: 31 Mar 2025 *

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