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Digital finance and sustainable lending in rural china: The role of fintech in green credit expansion

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  • Jia, Zhao
  • Feng, Tianyuan
  • Jing, Huiting

Abstract

This study examines how fintech adoption influences green credit expansion in rural commercial banks. Using panel data from Chinese rural banks, we find that digitalization significantly boosts green lending by enhancing risk assessment. Fintech affects green credit directly and indirectly by lowering nonperforming loan rates, with impacts differing across bank characteristics. These findings bridge technological innovation and sustainable finance, highlighting fintech as a key driver of green lending in underserved markets.

Suggested Citation

  • Jia, Zhao & Feng, Tianyuan & Jing, Huiting, 2025. "Digital finance and sustainable lending in rural china: The role of fintech in green credit expansion," Finance Research Letters, Elsevier, vol. 86(PB).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pb:s1544612325015946
    DOI: 10.1016/j.frl.2025.108340
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