The effect of Fintech on bank riskiness
| Model 1 COMPONENT_FINTECH | Model 2 IN_HOUSE FINTECH | Model 3 COLL_FINTECH | ||||
|---|---|---|---|---|---|---|
| (1) | (2) | (1) | (2) | (1) | (2) | |
| Variables | RWA | RWA | RWA | RWA | RWA | RWA |
| FINTECH | −0.214 | 9.100 | −2.387 | 28.420 | 0.444 | 10.020 |
| (6.932) | (6.021) | (19.842) | (23.046) | (9.462) | (8.465) | |
| W_INDEP | −0.028 | 0.002 | −0.029 | 0.078 | −0.028 | 0.275 |
| (0.123) | (0.122) | (0.129) | (0.117) | (0.123) | (0.245) | |
| FINTECH#W_INDEP | −0.222* | −0.691* | −0.244 | |||
| (0.122) | (0.382) | (0.163) | ||||
| ROA | −210.090 | −264.496 | −208.433 | −272.656 | −212.407 | −227.936 |
| (489.279) | (492.499) | (482.171) | (480.309) | (496.873) | (505.590) | |
| LNTA | −9.092** | −8.782** | −9.073** | −8.878** | −9.119** | −8.847** |
| (3.715) | (3.430) | (3.739) | (3.542) | (3.712) | (3.452) | |
| TIER | −164.432 | −142.048 | −161.240 | −149.111 | −168.128 | −147.111 |
| (145.222) | (124.143) | (159.953) | (144.401) | (145.875) | (126.510) | |
| BODSIZE | 4.861* | 4.127 | 4.848* | 3.887 | 4.865* | 4.769 |
| (2.800) | (3.039) | (2.840) | (2.958) | (2.763) | (2.911) | |
| DEP | −18.739 (37.544) | −19.376 (37.207) | −18.344 (32.441) | −19.938 (32.441) | −19.660 (39.449) | −18.637 (39.064) |
| INTEREST | −103.700 | −88.703** | −102.906 | −101.321 | −106.148 | −83.512 |
| (116.920) | (119.560) | (109.460) | (107.710) | (123.011) | (130.288) | |
| CONSTANT | 564.424 | 575.226 | 555.618 | 589.724 | 584.604 | 543.282 |
| (778.721) | (778.242) | (664.518) | (670.053) | (811.868) | (811.818) | |
| YEAR FE | YES | YES | YES | YES | YES | YES |
| OBSERVATIONS | 442 | 442 | 442 | 442 | 442 | 442 |
| R-SQUARED | 0.155 | 0.179 | 0.155 | 0.174 | 0.155 | 0.171 |
| NUMBER OF BANKS | 104 | 104 | 104 | 104 | 104 | 104 |
| Model 1 | Model 2 | Model 3 | ||||
|---|---|---|---|---|---|---|
| (1) | (2) | (1) | (2) | (1) | (2) | |
| Variables | RWA | RWA | RWA | RWA | RWA | RWA |
| FINTECH | −0.214 | 9.100 | −2.387 | 28.420 | 0.444 | 10.020 |
| (6.932) | (6.021) | (19.842) | (23.046) | (9.462) | (8.465) | |
| W_INDEP | −0.028 | 0.002 | −0.029 | 0.078 | −0.028 | 0.275 |
| (0.123) | (0.122) | (0.129) | (0.117) | (0.123) | (0.245) | |
| FINTECH#W_INDEP | −0.222* | −0.691* | −0.244 | |||
| (0.122) | (0.382) | (0.163) | ||||
| ROA | −210.090 | −264.496 | −208.433 | −272.656 | −212.407 | −227.936 |
| (489.279) | (492.499) | (482.171) | (480.309) | (496.873) | (505.590) | |
| LNTA | −9.092** | −8.782** | −9.073** | −8.878** | −9.119** | −8.847** |
| (3.715) | (3.430) | (3.739) | (3.542) | (3.712) | (3.452) | |
| TIER | −164.432 | −142.048 | −161.240 | −149.111 | −168.128 | −147.111 |
| (145.222) | (124.143) | (159.953) | (144.401) | (145.875) | (126.510) | |
| BODSIZE | 4.861* | 4.127 | 4.848* | 3.887 | 4.865* | 4.769 |
| (2.800) | (3.039) | (2.840) | (2.958) | (2.763) | (2.911) | |
| DEP | −18.739 (37.544) | −19.376 (37.207) | −18.344 (32.441) | −19.938 (32.441) | −19.660 (39.449) | −18.637 (39.064) |
| INTEREST | −103.700 | −88.703** | −102.906 | −101.321 | −106.148 | −83.512 |
| (116.920) | (119.560) | (109.460) | (107.710) | (123.011) | (130.288) | |
| CONSTANT | 564.424 | 575.226 | 555.618 | 589.724 | 584.604 | 543.282 |
| (778.721) | (778.242) | (664.518) | (670.053) | (811.868) | (811.818) | |
| YEAR FE | YES | YES | YES | YES | YES | YES |
| OBSERVATIONS | 442 | 442 | 442 | 442 | 442 | 442 |
| R-SQUARED | 0.155 | 0.179 | 0.155 | 0.174 | 0.155 | 0.171 |
| NUMBER OF BANKS | 104 | 104 | 104 | 104 | 104 | 104 |
Note(s): Robust standard errors in parentheses ***p < 0.01, **p < 0.05 and *p < 0.1
Source(s): Authors' own creation
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