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FinTech adoption and bank risk-taking: evidence from China

Author

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  • Pin Guo
  • Maoyong Cheng
  • Yue Shen

Abstract

We examine the impact of FinTech adoption on bank risk-taking. Applying the instrumental variable panel quantile regression (IV-QRPD) approach to the data of 160 Chinese commercial banks over the period of 2011–2020, we provide fresh evidence on the quantile-varying relation between FinTech adoption and bank risk-taking. We show that FinTech adoption increases bank risk-taking in low and middle quantiles but reduces bank risk-taking in high quantiles. We further find that this quantile-varying impact works through the efficiency-enhancing, gamble for resurrection, and credit expansion channels.

Suggested Citation

  • Pin Guo & Maoyong Cheng & Yue Shen, 2024. "FinTech adoption and bank risk-taking: evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 31(7), pages 594-602, April.
    • Handle: RePEc:taf:apeclt:v:31:y:2024:i:7:p:594-602
    DOI: 10.1080/13504851.2022.2140755
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    Citations

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    Cited by:

    1. Guo, Pin & Zhang, Zhao & Ling, Ling & Cao, Zhongyu, 2025. "Supervisory independence and bank risk: Evidence from China," Research in International Business and Finance, Elsevier, vol. 79(C).
    2. Areej Hijazin & Nemer Badwan, 2026. "The Impact of Financial Technology Development (FinTech) on the Profitability of Conventional and Islamic Banks Listed on the Palestine Stock Exchange," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(1), pages 138-168, February.
    3. Li, Chengyou & Li, Yuxin & Xu, Yun & Sun, Guanglin, 2025. "Research on the impact of financial technology on risk-taking of commercial banks," Research in International Business and Finance, Elsevier, vol. 76(C).
    4. Ali, Hassnian & Aysan, Ahmet Faruk, 2025. "Macroeconomic asymmetries and their influence on fintech ecosystem growth: A global and regional perspective," The Journal of Economic Asymmetries, Elsevier, vol. 31(C).
    5. Li, Houjian & Cheng, Quanfeixue & Su, Mengying & Zhang, Kuan, 2025. "Empowering ESG: The pivotal influence of directors' and officers' liability insurance on corporate sustainability," International Review of Economics & Finance, Elsevier, vol. 101(C).
    6. Ngo, Xuan Thanh & Le, Kim-Anh & Nguyen, Thanh Trung & Nguyen, Khoa Dang, 2025. "Does FinTech curb bank risk-taking? Insights from an emerging economy," Finance Research Letters, Elsevier, vol. 86(PF).
    7. YingShan Xu & Ainul Mohsein bt Abdul Mohsin & Fan Yang, 2025. "Market concentration, digital transformation, and bank credit risk in China: evidence from GMM estimation," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-13, December.

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