The impact of FinTech firms on bank financial stability

Md Safiullah; Sudharshan Reddy Paramati

doi:10.1007/s10660-022-09595-z

The impact of FinTech firms on bank financial stability

Md Safiullah (Lead / Corresponding author), Sudharshan Reddy Paramati

Research output: Contribution to journal › Article › peer-review

17 Citations (Scopus)

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Abstract

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.

Original language	English
Number of pages	23
Journal	Electronic Commerce Research
Early online date	3 Aug 2022
DOIs	https://doi.org/10.1007/s10660-022-09595-z
Publication status	E-pub ahead of print - 3 Aug 2022

Keywords

FinTech firms
Bank financial stability
Emerging market

ASJC Scopus subject areas

Economics, Econometrics and Finance (miscellaneous)
Human-Computer Interaction

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10.1007/s10660-022-09595-zLicence: CC BY

Final Published VersionFinal published version, 759 KBLicence: CC BY

https://link.springer.com/10.1007/s10660-022-09595-z

Cite this

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title = "The impact of FinTech firms on bank financial stability",

abstract = "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{\textquoteright} impact on bank financial stability holds when we conduct sub-sample analyses by bank size, bank type (Islamic vis-{\`a}-vis conventional), and level of corporate governance. The results are robust to alternative model specifications, measures of financial stability, and FinTech.",

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AU - Paramati, Sudharshan Reddy

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Y1 - 2022/8/3

N2 - 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.

AB - 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.

KW - FinTech firms

KW - Bank financial stability

KW - Emerging market

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JO - Electronic Commerce Research

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ER -

The impact of FinTech firms on bank financial stability

Abstract

Keywords

ASJC Scopus subject areas

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