Digital economy and entrusted loans: Evidence from shadow banking

Wei Huang, Fan Yang and Yixin Zhu

Finance Research Letters, 2025, vol. 73, issue C

Abstract: Entrusted loans represent a vital component of shadow banking in China and have significant implications for financial system stability. Taking advantage of a sample covering all A-share traded Chinese firms from 2013 to 2022, this research explores the impact of the digital economy on entrusted loans. We display that the level of the digital economy reduces the scale of entrusted loans by strengthening bank risk management and increasing corporate financing options. Further analysis shows that banking competition can amplify the negative link we found. Overall, this study advances extant literature on the digital economy and shadow banking.

Keywords: Entrusted loans; Digital economy; Efficiency; Information (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612324014326
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:73:y:2025:i:c:s1544612324014326

DOI: 10.1016/j.frl.2024.106403

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 ().