Is cloud computing the digital solution to the future of banking?

Maoyong Cheng* (Corresponding Author), Yang Qu* (Corresponding Author), Chunxia Jiang* (Corresponding Author), Chenchen Zhao* (Corresponding Author)

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)
12 Downloads (Pure)


This study investigates the impact of banks’ strategic move to cloud computing on bank performance and risk-taking. Based on a novel index of banks’exposure to cloud computing, we find that banks’ adoption of cloud computing is associated with lower cost efficiency, higher profit efficiency, and greater operational risk using data on Chinese banks over the period 2008–2019. We also find that cloud computing interacts with other newly emerging technologies, leading to synergy gains in cost efficiency and operational risk control but with a substitutive effect on profit efficiency from blockchain. The findings are of timely policy importance and practical relevance for regulators, policy-makers, and bank managers.
Original languageEnglish
Article number101073
Number of pages20
JournalJournal of Financial Stability
Early online date23 Sept 2022
Publication statusPublished - Dec 2022

Bibliographical note

Acknowledgment: We express our thanks to the editors and anonymous referees for their constructive comments and suggestions, which have helped us significantly improve this paper. We have benefitted from discussions with
colleagues and participants of different seminars/workshops in China and the UK. All remaining errors are our own. This research is financially supported by the Natural Science Foundation of China (72173036, 71973148) and the Chinese National Funding of Social Sciences (19CJY065).


  • Clouds computing
  • bank efficiency
  • technical synergy
  • China


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