Empirical Insights into Financial Integration: Fintech Credit and Regulatory Dynamics

Fiaz Ahmad Sulehri, Marc Audi, Muhammad Saleem Ashraf, Habiba Azam, Syeda Ambreen Fatima Bukhari and Amjad Ali

MPRA Paper from University Library of Munich, Germany

Abstract: Financial integration is important because it has the potential to enhance economic growth and stability by facilitating cross-border capital flows and reducing financial market fragmentation. This study investigates the influence of FinTech credit and banking regulations on financial integration in both developed and developing countries, spanning the period from 2013 to 2019. We consider financial integration to be the dependent variable, and we select FinTech credit, banking regulations, bank concentration, remittance volumes, state-owned enterprises, and financial development as explanatory variables. The study employs the Generalized Method of Moments (GMM) to estimate the coefficients. The findings indicate that FinTech credit, remittance volumes, and financial development all contribute positively to financial integration. In contrast, banking regulations exhibit an insignificant relationship with financial integration. Moreover, the results indicate that bank concentration and state-owned enterprises act as deterrents to financial integration among nations. The implications of the results suggest that to enhance the level of financial integration, global economies should promote FinTech credit, increase remittance volumes, and foster financial development while concurrently discouraging bank concentration and state-owned enterprises.

Keywords: Financial integration; state own enterprises; financial development; FinTech credit; bank regulations; amount of remittances; bank concentration (search for similar items in EconPapers)
JEL-codes: G10 G20 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-fdg, nep-fle, nep-ifn and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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