 FinTech, systemic risk and bank market power – Australian perspectiveMd Sohel Saklain International Review of Financial Analysis, 2024, vol. 95, issue PA Abstract: This study investigates idiosyncratic/firm-specific risk and systemic risk of FinTech firms and traditional financial institutions (FIs) in Australia. It also examines the impact of FinTech growth on bank market power. I find that stock return and idiosyncratic risk are higher in FinTech firms than in traditional FIs. Regarding systemic risk, FinTech firms are more exposed/vulnerable to systemic shocks than traditional FIs. However, they do not contribute to higher systemic risk as compared to traditional FIs. There is no substantial evidence that bank market power (captured by Lerner index) reduces due to the growth of FinTech firms. Yet, there is partial evidence that some accounting performances of banks may decline due to the growth of FinTech firms. Since FinTech firms are highly exposed/vulnerable to systemic shock, regulators should continue monitoring FinTech development closely and ensure that investors are aware of the risk and retail consumers of these firms are well protected. Keywords: FinTech; Systemic risk; Bank market power; Financial stability (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:95:y:2024:i:pa:s1057521924002837 DOI: 10.1016/j.irfa.2024.103351 Access Statistics for this article International Review of Financial Analysis is currently edited by B.M. Lucey More articles in International Review of Financial Analysis from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.