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FinTech adoption and bank risk-taking: evidence from China

  • Xi'an Jiaotong University

Research output: Contribution to journalArticlepeer-review

21 Scopus citations

Abstract

We examine the impact of FinTech adoption on bank risk-taking. Applying the instrumental variable panel quantile regression (IV-QRPD) approach to the data of 160 Chinese commercial banks over the period of 2011–2020, we provide fresh evidence on the quantile-varying relation between FinTech adoption and bank risk-taking. We show that FinTech adoption increases bank risk-taking in low and middle quantiles but reduces bank risk-taking in high quantiles. We further find that this quantile-varying impact works through the efficiency-enhancing, gamble for resurrection, and credit expansion channels.

Original languageEnglish
Pages (from-to)594-602
Number of pages9
JournalApplied Economics Letters
Volume31
Issue number7
DOIs
StatePublished - 2024

Keywords

  • China
  • FinTech
  • bank risk-taking
  • panel quantile regression

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