Fintech and commercial bank risks–The moderating effect of financial regulation

Qing Ni, Li Zhang and Chengsong Wu

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

Abstract: This study examines the relationship between financial technology (fintech) and commercial bank risk, using unbalanced panel data from 114 Chinese urban banks from 2014 to 2021. The findings reveal a complex and dynamic relationship. Overall, fintech has a mitigating effect on bank risk. However, the relationship follows an inverted U-shaped pattern, exacerbating risks in the early stages but reducing them as fintech develops. In particular, financial regulation plays a crucial role in moderating this relationship by counteracting the negative effects during the initial introduction of fintech.

Keywords: Fintech; Bank risk; Financial regulation; Moderating effect; Empirical research (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pc:s154461232300908x

DOI: 10.1016/j.frl.2023.104536

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