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Fintech and the economic capital of Chinese commercial bank's risk: Based on theory and evidence

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  • Ting Yao
  • Liangrong Song

Abstract

This article examines the impact of “finance + technology” (Fintech) on different sizes of banks economic capital through the application of Fintech perspective in China during the period January 2011 and September 2019, using a dynamic panel generalized method of moments (GMM) estimation technique. The study found compared with small and medium‐sized banks, large state‐owned commercial banks have advantages in scale, capital and experience. There is a negative correlation between the scale of assets of commercial banks and economic capital. Further tests reveal the impact of Fintech on the profitability of different types of commercial banks shows significant heterogeneity.

Suggested Citation

  • Ting Yao & Liangrong Song, 2023. "Fintech and the economic capital of Chinese commercial bank's risk: Based on theory and evidence," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 2109-2123, April.
    • Handle: RePEc:wly:ijfiec:v:28:y:2023:i:2:p:2109-2123
    DOI: 10.1002/ijfe.2528
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    References listed on IDEAS

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    Cited by:

    1. Wu Binghui & Qi Yaxin, 2025. "Does Fintech Improve the Risk-Taking Capacity of Commercial Banks? Empirical Evidence from China," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 19(1), pages 1-22.
    2. Liao, Kezhi & Ma, Chengcheng & Zhang, Jingxue & Wang, Zhihao, 2024. "Does big data infrastructure development facilitate bank fintech innovation? Evidence from China," Finance Research Letters, Elsevier, vol. 65(C).

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