Fintech, Macroprudential Supervision and Systematic Risk in China’s Banks

作     者：Daoping Wang Yangjingzhuo Liu Yuxuan Xu Linlin Liu 

作者机构：School of FinanceNankai University School of EconomicsPeking University 

出 版 物：《China Finance and Economic Review》 (中国财政与经济研究（英文）)

年 卷 期：2022年第11卷第4期

页      面：110-129页

学科分类：02[经济学] 0202[经济学-应用经济学] 

基　　金：supported by the National Social Science Fund of China(18CJY061)。 

主　　题：fi ntech macroprudential supervision systemic risk 

摘      要：In recent years,the rapid development of fi ntech has brought far-reaching changes to the fi nancial sector.At the same time,fi ntech may cause potential systemic risk in the fi nancial sector,which has aroused special concerns from fi nancial regulatory authorities.Based on the micro data of China’s listed banks from 2013 to 2020,this paper analyzes the impact of fi ntech development on systemic risk in China’s banking industry and its mechanism.It reveals that for a micro bank,fintech progress increases its risk-taking and enhances inter-bank linkages,which results in signifi cantly amplifi ed systemic risk,and the impact is time-lagged and persistent.In addition,the heterogeneity analysis shows that the impacts of fi ntech on state-owned banks and other banks are heterogeneous and the margining risk of state-owned banks is lower when the fi ntech improves.It is also found that enhancing macroprudential supervision can reduce the systemic risk spillover of fintech.Robustness analyses including GMM regression and the method of instrumental variables prove that the conclusion is robust.This paper is of theoretical and policy signifi cance for the prevention of systemic risk in the banking industry as China develops fi ntech.