The effect of fintech on banks’ credit provision to SMEs: Evidence from China

Tianxiang Sheng

Finance Research Letters, 2021, vol. 39, issue C

Abstract: This study examines the impact of financial technology (fintech) on the ability of banks to offer credit to small and medium enterprises (SMEs). By analyzing the lending records of banks in Chinese provinces from 2011 to 2018, we demonstrate that fintech effectively facilitates the banking sector's credit supply to SMEs. We also consider whether the impact of fintech varies according to the size of the bank. Compared with small banks, fintech has a more significant influence on the increase in credit for SMEs in large banks. Thus, maybe it is more important to utilize fintech than to develop many small banks.

Keywords: Small and medium enterprises; Financial technology; Fintech; Bank credit; Sizes of banks (search for similar items in EconPapers)
JEL-codes: G21 G28 G38 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612320301148
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:39:y:2021:i:c:s1544612320301148

DOI: 10.1016/j.frl.2020.101558

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().