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Bank non-performing loans in the Fintech era

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  • Ozili, Peterson K

Abstract

This study investigates the behavior of bank non-performing loans in the Fintech era. Using data from 35 developed countries from 1998 to 2016, the findings show that non-performing loans are fewer in the second wave Fintech era. Also, bank non-performing loans are positively related to the state of the business cycle in the second wave Fintech era. Countries that have high supply of credit to the private sector experience high non-performing loans in the second wave Fintech era. The two-way interaction analysis show that non-performing loans are lower during times of economic boom and when there is higher credit supply in the second-wave Fintech era.

Suggested Citation

  • Ozili, Peterson K, 2021. "Bank non-performing loans in the Fintech era," MPRA Paper 113467, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:113467
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    File URL: https://mpra.ub.uni-muenchen.de/113467/1/MPRA_paper_113467.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    non-performing loan; financial innovation; disruptive technology; legal system; banks; Fintech; banks; credit risk; first wave Fintech era; second wave Fintech era.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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