This study is the first to examine the impact of FinTech firms on bank financial stability. Using a sample of 26 banks from an emerging market (Malaysia), over the period 2003–2018, we find that the development of FinTech firms over time increases bank financial stability. We uncover further evidence that FinTech firms’ impact on bank financial stability holds when we conduct sub-sample analyses by bank size, bank type (Islamic vis-à-vis conventional), and level of corporate governance. The results are robust to alternative model specifications, measures of financial stability, and FinTech.
|Number of pages||23|
|Journal||Electronic Commerce Research|
|Early online date||3 Aug 2022|
|Publication status||E-pub ahead of print - 3 Aug 2022|
- FinTech firms
- Bank financial stability
- Emerging market