Can the development of Fintech mitigate non-performing loan risk?

Yuanzhe Chai and Suchao Sun

Finance Research Letters, 2024, vol. 67, issue PB

Abstract: This paper examines how commercial banks’ fintech development can mitigate non-performing loan (NPL) risk. This study adopted a two-fixed model and examined listed commercial banks from 2011 to 2022. Findings indicate that fintech development can mitigate NPL risk through pre-lending and post-loan cost reduction and revenue growth effects. This study contributes to theory and practice for advancing the growth of commercial banks while upholding the stability of the financial system. The findings provide a reference for nations using digital technology to maintain financial stability.

Keywords: Fintech; Non-performing loan risks; Commercial banks (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pb:s154461232400919x

DOI: 10.1016/j.frl.2024.105889

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