IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v56y2024i6p639-655.html
   My bibliography  Save this article

Research on the influence of FinTech development on credit supply of commercial banks: the case of China

Author

Listed:
  • Guo Wu
  • Jiadong Luo
  • Kejing Tao

Abstract

This study investigates the impact of FinTech development on the credit supply of China’s commercial banks to individuals and enterprises. We first evaluate the development status and prospects of FinTech in China and construct theoretical influencing hypotheses. A ‘supply-side’ FinTech development index is constructed using principal component analysis. We employ panel data models and use financial data from 22 listed China’s commercial banks between the year 2013 and 2020 to empirically test the hypothesized relationships. Multiple approaches are used to deal with endogenous problems. We also estimate the impact in a difference-in-difference model specification. The results show that FinTech development effectively facilitates the expansion of bank credit and the relationship continues to hold after remedying endogeneity issues. We further find that the impact is heterogeneous across banks in terms of bank type and bank size, with the impact on state-owned commercial banks being the least significant and the impact on small banks being the most significant.

Suggested Citation

  • Guo Wu & Jiadong Luo & Kejing Tao, 2024. "Research on the influence of FinTech development on credit supply of commercial banks: the case of China," Applied Economics, Taylor & Francis Journals, vol. 56(6), pages 639-655, February.
    • Handle: RePEc:taf:applec:v:56:y:2024:i:6:p:639-655
    DOI: 10.1080/00036846.2023.2169243
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2023.2169243
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2023.2169243?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:56:y:2024:i:6:p:639-655. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.