Browse by author
Lookup NU author(s): Dr Jose Liu
Full text for this publication is not currently held within this repository. Alternative links are provided below where available.
Due to information asymmetry in the lending market, credit activities inevitably cause pre‐ and post‐loan risk in banks. To explore whether these risks can be alleviated by fintech and study its specific mechanism from the perspective of managers, we investigate on a sample from the establishment of fintech subsidiaries in Chinese commercial banks during 2014–2018. The results show that fintech can alleviate pre‐loan risk associated with credit activities, and this negative effect is more pronounced in banks with higher level of managerial ownership. As the control of post‐loan risk is more dependent on the regulators, fintech in banks has no significant effect on reducing post‐loan risk associated with credit activities. This paper adds empirical evidence on the role of fintech in banks.
Author(s): Zhang A, Wang S, Liu B, Liu P
Publication type: Article
Publication status: Published
Journal: International Journal of Finance and Economics
Pages: epub ahead of print
Online publication date: 06/10/2020
Acceptance date: 08/09/2020
ISSN (print): 1076-9307
ISSN (electronic): 1099-1158
Altmetrics provided by Altmetric