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The impact of bank FinTech on green credit allocation: Evidence from China

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  • Deng, Yumiao
  • Fang, Mengmeng
  • Ma, Sichao
  • Wang, Fanzhi
  • Wu, Wanting

Abstract

This paper investigates the impact of bank FinTech on green credit allocation, using a sample of listed firms in China from 2014 to 2020. We construct a bank FinTech index through textual analysis and find that: (1) Banks with more advanced FinTech significantly allocate more green credit to eco-friendly firms. (2) FinTech primarily empowers banks in green credit allocation by expanding business channels, improving information processing efficiency, and strengthening risk management capabilities. (3) Advanced FinTech banks offer more credit to clean firms in traditional energy sectors and favor firms in high-energy-supply regions over high-energy-consumption ones. (4) There exists a quadratic relationship between bank FinTech and credit allocation to heavily polluting firms, characterized by an initial decrease followed by an increase.

Suggested Citation

  • Deng, Yumiao & Fang, Mengmeng & Ma, Sichao & Wang, Fanzhi & Wu, Wanting, 2025. "The impact of bank FinTech on green credit allocation: Evidence from China," Finance Research Letters, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:finlet:v:71:y:2025:i:c:s1544612324014533
    DOI: 10.1016/j.frl.2024.106424
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