IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v69y2024ipbs1544612324012844.html
   My bibliography  Save this article

How does the financial technology innovation regulatory pilot influence financial regulation?

Author

Listed:
  • Chen, Yuling
  • Che, Zhen
  • Wan, Dongqi

Abstract

Integration of technology and finance presents significant challenges for financial regulators, necessitating formulation of policies for mitigating financial security risks and related concerns. This study examines the impact of the Pilot Project of Regulation on Fintech Innovation (PPRFI) on financial regulation in China from 2013 to 2022. Findings demonstrate that PPRFI significantly strengthens financial regulation, with financial technology mediating the relationship between PPRFI and regulatory effectiveness. Heterogeneity analysis reveals that the policy's positive effects are more pronounced in provinces with lower levels of human capital and in the western regions of China.

Suggested Citation

  • Chen, Yuling & Che, Zhen & Wan, Dongqi, 2024. "How does the financial technology innovation regulatory pilot influence financial regulation?," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012844
    DOI: 10.1016/j.frl.2024.106255
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324012844
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106255?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.

    References listed on IDEAS

    as
    1. Qian Liu & Yiheng You, 2023. "FinTech and Green Credit Development—Evidence from China," Sustainability, MDPI, vol. 15(7), pages 1-23, March.
    2. Liu, Jiangtao & Zhang, Yi & Kuang, Jia, 2023. "Fintech development and green innovation: Evidence from China," Energy Policy, Elsevier, vol. 183(C).
    3. Barroso, João Barata Ribeiro Blanco & Silva, Thiago Christiano & Souza, Sergio Rubens Stancato de, 2018. "Identifying systemic risk drivers in financial networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 503(C), pages 650-674.
    4. Shim, Yongwoon & Shin, Dong-Hee, 2016. "Analyzing China’s Fintech Industry from the Perspective of Actor–Network Theory," Telecommunications Policy, Elsevier, vol. 40(2), pages 168-181.
    5. Baomin Chen & Xinyun Yang & Zhenzhong Ma, 2022. "Fintech and Financial Risks of Systemically Important Commercial Banks in China: An Inverted U-Shaped Relationship," Sustainability, MDPI, vol. 14(10), pages 1-20, May.
    6. Morshadul Hasan & Thi Le & Ariful Hoque, 2021. "How does financial literacy impact on inclusive finance?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-23, December.
    7. Tianlei Pi & Haoxuan Hu & Jingyi Lu & Xue Chen, 2022. "The Analysis of Fintech Risks in China: Based on Fuzzy Models," Mathematics, MDPI, vol. 10(9), pages 1-13, April.
    8. Beckstedde, Ellen & Correa Ramírez, Mauricio & Cossent, Rafael & Vanschoenwinkel, Janka & Meeus, Leonardo, 2023. "Regulatory sandboxes: Do they speed up innovation in energy?," Energy Policy, Elsevier, vol. 180(C).
    9. Zhong, Yuting & Jin, Xin, 2024. "How does technology finance promote the high-quality development of firms? Evidence from China," Finance Research Letters, Elsevier, vol. 69(PB).
    10. Habiba, Umme & Xinbang, Cao & Anwar, Ahsan, 2022. "Do green technology innovations, financial development, and renewable energy use help to curb carbon emissions?," Renewable Energy, Elsevier, vol. 193(C), pages 1082-1093.
    11. Edward M. H. Lin & Edward W. Sun & Min-Teh Yu, 2018. "Systemic risk, financial markets, and performance of financial institutions," Annals of Operations Research, Springer, vol. 262(2), pages 579-603, March.
    12. Roth, Jonathan & Sant’Anna, Pedro H.C. & Bilinski, Alyssa & Poe, John, 2023. "What’s trending in difference-in-differences? A synthesis of the recent econometrics literature," Journal of Econometrics, Elsevier, vol. 235(2), pages 2218-2244.
    13. Xiuping Hua & Yiping Huang, 2021. "Understanding China’s fintech sector: development, impacts and risks," The European Journal of Finance, Taylor & Francis Journals, vol. 27(4-5), pages 321-333, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiao, Anran & Xu, Zeshui & Skare, Marinko & Xiao, JingLin & Qin, Yong, 2024. "Unlocking the potential of FinTech: A pathway to sustainable resource management in the EU," Resources Policy, Elsevier, vol. 98(C).
    2. Tang, Pengzhu & Ma, Houyun & Sun, Yuanyuan & Xu, Xiaowan, 2024. "Exploring the role of Fintech, Green Finance and Natural Resources towards Environmental Sustainability: A study on ASEAN economies," Resources Policy, Elsevier, vol. 94(C).
    3. Jiang, Hu & Yang, Yihan & Wang, Yiwen & Chandni, Kehkashan & Wang, Mengzhen, 2024. "Shades of sustainability: Decoding the influence of fintech, natural resources and green ICT on CO2 emissions and green growth in China," Resources Policy, Elsevier, vol. 97(C).
    4. Guo, Xiaoxin & Zhong, Shihu, 2023. "Unintended consequences: How does digital inclusive finance affect migrants' urban settlement intentions?," International Review of Financial Analysis, Elsevier, vol. 89(C).
    5. Wu, Shan & Tong, Mu & Yang, Zhongyi & Zhang, Tianyi, 2021. "Interconnectedness, systemic risk, and the influencing factors: Some evidence from China’s financial institutions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 569(C).
    6. Alex Hollingsworth & Krzysztof Karbownik & Melissa A. Thomasson & Anthony Wray, 2024. "The Gift of a Lifetime: The Hospital, Modern Medicine, and Mortality," American Economic Review, American Economic Association, vol. 114(7), pages 2201-2238, July.
    7. Yechan Park & Yuya Sasaki, 2024. "Matching $\leq$ Hybrid $\leq$ Difference in Differences," Papers 2411.07952, arXiv.org, revised Feb 2025.
    8. Koima, Josephat, 2024. "School electrification and academic outcomes in rural Kenya," Journal of Development Economics, Elsevier, vol. 166(C).
    9. Walker, Brigham, 2023. "Price and saliency in health care: When can targeted nudges change behaviors?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).
    10. Zappa, Paola & Vu, Duy Q., 2021. "Markets as networks evolving step by step: Relational Event Models for the interbank market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 565(C).
    11. Li, Daiyue & Jin, Yanhong & Cheng, Mingwang, 2024. "Unleashing the power of industrial robotics on firm productivity: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 500-520.
    12. Wu, Guoyong & Gao, Yue & Feng, Yanchao, 2023. "Assessing the environmental effects of the supporting policies for mineral resource-exhausted cities in China," Resources Policy, Elsevier, vol. 85(PB).
    13. Krekel, Christian & Srisuma, Sorawoot, 2024. "Talking Therapy: Impacts of a Nationwide Mental Health Service in England," IZA Discussion Papers 16839, Institute of Labor Economics (IZA).
    14. Lennard, Jason & Paker, Meredith, 2023. "Devaluation, Exports, and Recovery from the Great Depression," CEPR Discussion Papers 18702, C.E.P.R. Discussion Papers.
    15. X. Zhang & L. D. Valdez & H. E. Stanley & L. A. Braunstein, 2019. "Modeling Risk Contagion in the Venture Capital Market: A Multilayer Network Approach," Complexity, Hindawi, vol. 2019, pages 1-11, December.
    16. Katarzyna Czech & Luiza Ochnio & Michał Wielechowski & Serhiy Zabolotnyy, 2024. "Financial Literacy: Identification of the Challenges, Needs, and Difficulties among Adults Living in Rural Areas," Agriculture, MDPI, vol. 14(10), pages 1-17, September.
    17. Lindquist, Matthew & Patacchini, Eleonora & Vlassopoulos, Michael & Zenou, Yves, 2024. "Spillovers in Criminal Networks: Evidence from Co-Offender Deaths," CEPR Discussion Papers 19159, C.E.P.R. Discussion Papers.
    18. Mark Kattenberg & Bas Scheer & Jurre Thiel, 2023. "Causal forests with fixed effects for treatment effect heterogeneity in difference-in-differences," CPB Discussion Paper 452, CPB Netherlands Bureau for Economic Policy Analysis.
    19. Jeffrey D. Michler & Dewan Abdullah Al Rafi & Jonathan Giezendanner & Anna Josephson & Valerien O. Pede & Elizabeth Tellman, 2024. "Impact Evaluations in Data Poor Settings: The Case of Stress-Tolerant Rice Varieties in Bangladesh," Papers 2409.02201, arXiv.org.
    20. Salikhova, Tatiana & Ugarov, Alexander & Orlova, Svetlana, 2024. "Dividend smoothing and financial transparency," Finance Research Letters, Elsevier, vol. 62(PA).

    More about this item

    Keywords

    Pilot project of regulation on fintech innovation; Financial technology; Financial Regulation; China;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    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:eee:finlet:v:69:y:2024:i:pb:s1544612324012844. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    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.