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Impact of the development of FinTech by commercial banks on bank credit risk

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  • Zhang, Yujin
  • Ye, Shujun
  • Liu, Jie
  • Du, Lihong

Abstract

This paper constructs FinTech development indicators of commercial banks through web crawler, and uses the data of 138 Chinese commercial banks from 2013 to 2021 to investigate the impact of the development of FinTech of commercial banks on bank credit risk. The results show that the development of FinTech significantly reduces the credit risk level of commercial banks, among which the application of FinTech in the digital risk control of banks plays an important role in reducing bank credit risk, and the development of FinTech in small and medium-sized banks has a greater inhibitory effect on credit risk.

Suggested Citation

  • Zhang, Yujin & Ye, Shujun & Liu, Jie & Du, Lihong, 2023. "Impact of the development of FinTech by commercial banks on bank credit risk," Finance Research Letters, Elsevier, vol. 55(PA).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323002295
    DOI: 10.1016/j.frl.2023.103857
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    References listed on IDEAS

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    Cited by:

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    4. Fan, Chenguang & Bae, Seongho & Liu, Yu, 2024. "Can FinTech transform corporate liquidity? Evidence from China," Innovation and Green Development, Elsevier, vol. 3(2).
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    6. Rapih, Subroto & Susantiningrum, & Wahyono, Budi & Borges, Jorge Tavares & Phongsounthone, Somesanook, 2023. "Financial openness and fintech credit," Finance Research Letters, Elsevier, vol. 56(C).
    7. Nourallah, Mustafa & Öhman, Peter & Hamati, Samer, 2024. "Financial technology and financial capability: Study of the European Union," Global Finance Journal, Elsevier, vol. 62(C).
    8. Wang, Zongrun & Cao, Xuxin & Ren, Xiaohang & Taghizadeh-Hesary, Farhad, 2024. "Can digital transformation affect coal utilization efficiency in China? Evidence from spatial econometric analyses," Resources Policy, Elsevier, vol. 91(C).
    9. Zhu, Ruihua & Chen, Fang, 2024. "Tax and financial credit risks—Empirical evidence from Chinese investment enterprises," Finance Research Letters, Elsevier, vol. 61(C).
    10. Minglong Xian, 2024. "Impact of Inclusive Growth, Environmental Policy Incentives, Fintech and Globalization on Environmental Sustainability in G20 Countries," Sustainability, MDPI, vol. 17(1), pages 1-26, December.
    11. Nam Thanh Vu & Hung Quang Bui & Tuan Anh Pham & Duc Hong Vo, 2024. "Fintech development and environmental sustainability: Does income inequality matter?," Australian Economic Papers, Wiley Blackwell, vol. 63(2), pages 350-369, June.
    12. Khan, Habib Hussain & Kutan, Ali M. & Qureshi, Fiza, 2024. "Fintech integration: Driving efficiency in banking institutions across the developing nations," Finance Research Letters, Elsevier, vol. 67(PA).
    13. Del Gaudio, Belinda Laura & Gallo, Serena & Previtali, Daniele, 2024. "Exploring the drivers of investment in Fintech: Board composition and home bias in banking," Global Finance Journal, Elsevier, vol. 60(C).
    14. Zhang, Chaolin & Yu, Fangbo, 2024. "Can local fintech development improve analysts’ earnings forecast accuracy? Evidence from China," Finance Research Letters, Elsevier, vol. 63(C).
    15. Liu, Zhonglu & Li, Jun & Sun, Haibo, 2024. "Climate transition risk and bank risk-taking: The role of digital transformation," Finance Research Letters, Elsevier, vol. 61(C).
    16. Feng, Haiyan & Li, Yan, 2024. "The role of fintech, natural resources, environmental taxes and urbanization on environmental sustainability: Evidence from the novel panel data approaches," Resources Policy, Elsevier, vol. 92(C).
    17. Yang, Tongbin & Zhou, Bo, 2024. "Local FinTech development, industrial structure, and north-south economic disparity in China," International Review of Financial Analysis, Elsevier, vol. 93(C).
    18. Chen, Xiaojie & He, Guangwen & Li, Qian, 2024. "Can Fintech development improve the financial inclusion of village and township banks? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    19. Lin, Baoguo & Dong, Xueqin, 2024. "Empirical Study on the Impact of Digital Finance on Commercial Credit Allocation in SMEs," Finance Research Letters, Elsevier, vol. 61(C).
    20. Hodula, Martin, 2024. "Beyond innovation: Fintech credit and its ripple effects on traditional banking profitability," Finance Research Letters, Elsevier, vol. 63(C).

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