Fintech credit, credit information sharing and bank stability: some international evidence

This study relies on an aggregate dataset of 73 countries from 2013 to 2018 to investigate the nexus between fintech credit, credit information sharing on bank stability. We document several significant findings. First, our evidence implies that fintech credit tends to improve bank stability. This s...

Full description

Saved in:
Bibliographic Details
Published in:Cogent business & management 2022-12, Vol.9 (1), p.1-18
Main Authors: Liem, Nguyen Thanh, Son, Tran Hung, Tin, Ho Huu, Canh, Nguyen Thi
Format: Article
Language:English
Subjects:
Adverse selection
bank stability
Bank technology
Banking industry
Competition
credit information sharing
Electronic commerce
F21
Financial institutions
fintech
G32
Information sharing
Lenders
Moral hazard
Q55
Rating services
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This study relies on an aggregate dataset of 73 countries from 2013 to 2018 to investigate the nexus between fintech credit, credit information sharing on bank stability. We document several significant findings. First, our evidence implies that fintech credit tends to improve bank stability. This suggests that as fintech credit grows, it certainly competes with banks, but it also strengthens banks' stability. Second, credit information sharing increases bank stability. Thirdly, it is found that the impact of fintech credit on bank stability may depend on credit information sharing. Specifically, the presence of credit information sharing institutions may facilitate the positive effect of fintech credit on bank stability. This result remains unchanged to the introduction of alternative regression, as well as an alternative dependent variable. Finally, policy implications are discussed based on the findings of the research.
ISSN:2331-1975
2331-1975
DOI:10.1080/23311975.2022.2112527