The impact of open banking on traditional lending in the BRICS

Jianyu Fang and Jialiang Zhu

Finance Research Letters, 2023, vol. 58, issue PA

Abstract: This study examines the influence of open banking regulation on traditional bank loans in the emerging markets of the BRICS—Brazil, Russia, India, China, and South Africa. Utilizing bank-level and individual-level data, the paper reveals that the introduction of open banking significantly diminishes consumer loan lending by traditional banks. Additionally, consumer propensity to acquire loans from traditional banks decreases. The research provides empirical evidence of how open banking impacts both the supply and demand sides of individual loans from traditional banks. This paper contributes to the literature by highlighting the unique role of open banking in promoting financial inclusion in emerging economies.

Keywords: Open banking; BRICS; Consumer loans (search for similar items in EconPapers)
JEL-codes: D14 G21 G28 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323006724

DOI: 10.1016/j.frl.2023.104300

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