IT adoption and bank performance during the Covid-19 pandemic

Aristeidis Dadoukis, Maurizio Fiaschetti and Giulia Fusi

Economics Letters, 2021, vol. 204, issue C

Abstract: This paper examines the impact of pre-2020 information technology (IT) adoption on bank performance during the initial stages of the Covid-19 pandemic. We show that high IT adopters performed better in terms of market returns, Tobin’s q and lending. Our findings also suggest that higher pre-crisis IT investments are associated with more loans issued under the US Paycheck Protection Program, and lower rates of loan modifications due to Covid-19. This study corroborates other recent findings that technology adoption fosters banks’ resilience during crises, ultimately enhancing financial stability.

Keywords: Covid-19; Banking; IT adoption; Technology; Bank performance (search for similar items in EconPapers)
JEL-codes: G21 G32 M15 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:204:y:2021:i:c:s0165176521001816

DOI: 10.1016/j.econlet.2021.109904

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