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Digital inclusive finance penetration and household debt maturity structure: Empirical estimation based on China Family Panel Studies Data

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  • Jiayu Hou
  • Yingli Zhang

Abstract

This paper analyzes how the penetration of digital inclusive finance affects the maturity structure of household debt by matching data from the Peking University Digital Inclusive Finance Index and China Family Panel Studies (CFPS). Based on the conclusion, the broader penetration of digital inclusive finance has significantly improved the households’ long-term debt level, thereby contributing to a longer-term trend in the maturity structure of household debt. Simultaneously, the effect is more evident in households with high income, large consumption expenditure, low asset levels, and no credit constraints, as well as households in central and western regions and those with high housing prices. According to the mechanism research, there are three transmission channels: the liquidity constraint of credit, household mental accounting, and the traditional bank competition. Therefore, we should focus not only on how digital inclusive finance impact on the overall scale of household debt, but also on how to create a reasonable debt maturity structure conducive to prevent financial risks.

Suggested Citation

  • Jiayu Hou & Yingli Zhang, 2025. "Digital inclusive finance penetration and household debt maturity structure: Empirical estimation based on China Family Panel Studies Data," PLOS ONE, Public Library of Science, vol. 20(4), pages 1-22, April.
    • Handle: RePEc:plo:pone00:0320080
    DOI: 10.1371/journal.pone.0320080
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    1. Tobias Berg & Valentin Burg & Ana Gombović & Manju Puri, 2020. "On the Rise of FinTechs: Credit Scoring Using Digital Footprints," The Review of Financial Studies, Society for Financial Studies, vol. 33(7), pages 2845-2897.
    2. Lael Brainard, 2016. "The Use of Distributed Ledger Technologies in Payment, Clearing, and Settlement : a speech at the Institute of International Finance Blockchain Roundtable, Washington, D.C., April 14, 2016," Speech 895, Board of Governors of the Federal Reserve System (U.S.).
    3. Carlos Madeira, 2023. "Adverse selection, loan access and default behavior in the Chilean consumer debt market," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-29, December.
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