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Does the digital transformation of banks affect green credit?

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  • Shang, Xiaoting
  • Niu, Huayong

Abstract

This study explores the relationship between digital transformation and green credit in the banking industry. Based on data from China’s banks from 2010 to 2021, we find that the digital transformation of banks has a positive impact on the green credit scale. Among them, the higher level of bank management digitization is more effective for green credit growth. From the perspective of cooperation and competition banks’ digitization contribute to green credit through exogenous fintech and industry competition. In addition, the facilitating effect of the relationship is more pronounced under state-owned banks, large banks, loose monetary policy, and strong financial supervision.

Suggested Citation

  • Shang, Xiaoting & Niu, Huayong, 2023. "Does the digital transformation of banks affect green credit?," Finance Research Letters, Elsevier, vol. 58(PB).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323007663
    DOI: 10.1016/j.frl.2023.104394
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    References listed on IDEAS

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    Cited by:

    1. Zhitao Li & Ping Chen, 2024. "Sustainable Finance Meets FinTech: Amplifying Green Credit’s Benefits for Banks," Sustainability, MDPI, vol. 16(18), pages 1-30, September.
    2. He, Zuojing & Ge, Fangting & Ban, Shengxi & Min Du, Anna & Sheehan, Maura, 2024. "Fintech's influence on green credit provision: Empirical evidence from China’s listed banking sector," Research in International Business and Finance, Elsevier, vol. 70(PB).

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    More about this item

    Keywords

    Banking digitalization; Green credit; Exogenous fintech; Industry competition;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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