Additional analysis on 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 | −0.224 | 9.205 | −2.623 | 29.235 | 0.514 | 9.804 |
| (6.815) | (6.041) | (19.411) | (23.151) | (9.389) | (8.375) | |
| W_INDEP | 0.060 | 0.080 | 0.059 | 0.246 | 0.061 | 0.547 |
| (0.183) | (0.189) | (0.182) | (0.211) | (0.184) | (0.427) | |
| FINTECH#W_INDEP | −0.400** | −1.251** | −0.429 | |||
| (0.196) | (0.609) | (0.271) | ||||
| ROA | −261.214 | −307.903 | −258.725 | −320.513 | −264.253 | −271.041 |
| (510.227) | (509.523) | (500.713) | (493.959) | (518.469) | (520.894) | |
| LNTA | −9.001** | −8.730** | −8.980** | −8.926** | −9.031** | −8.677** |
| (3.727) | (3.409) | (3.751) | (3.566) | (3.723) | (3.402) | |
| TIER | −157.393 | −144.713 | −153.778 | −165.150 | −161.520 | −131.602 |
| (145.918) | (125.249) | (160.501) | (147.857) | (146.187) | (126.945) | |
| DEP | −19.625 (37.873) | −23.071 (35.637) | −19.181 (32.874) | −23.330 (31.545) | −20.644 (39.683) | −21.192 (37.941) |
| INTEREST | −83.160 | −83.70 | −82.340 | −88.476 | −85.845 | −78.908 |
| (114.590) | (114.485) | (107.616) | (107.056) | (121.345) | (123.240) | |
| CONSTANT | 629.476 | 695.460 | 619.396 | 704.287 | 651.841 | 641.385 |
| (795.492) | (757.405) | (684.116) | (664.359) | (823.512) | (795.324) | |
| YEAR FE | YES | YES | YES | YES | YES | YES |
| OBSERVATIONS | 442 | 442 | 442 | 442 | 442 | 442 |
| R-SQUARED | 0.147 | 0.177 | 0.147 | 0.171 | 0.147 | 0.168 |
| 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 | −0.224 | 9.205 | −2.623 | 29.235 | 0.514 | 9.804 |
| (6.815) | (6.041) | (19.411) | (23.151) | (9.389) | (8.375) | |
| W_INDEP | 0.060 | 0.080 | 0.059 | 0.246 | 0.061 | 0.547 |
| (0.183) | (0.189) | (0.182) | (0.211) | (0.184) | (0.427) | |
| FINTECH#W_INDEP | −0.400** | −1.251** | −0.429 | |||
| (0.196) | (0.609) | (0.271) | ||||
| ROA | −261.214 | −307.903 | −258.725 | −320.513 | −264.253 | −271.041 |
| (510.227) | (509.523) | (500.713) | (493.959) | (518.469) | (520.894) | |
| LNTA | −9.001** | −8.730** | −8.980** | −8.926** | −9.031** | −8.677** |
| (3.727) | (3.409) | (3.751) | (3.566) | (3.723) | (3.402) | |
| TIER | −157.393 | −144.713 | −153.778 | −165.150 | −161.520 | −131.602 |
| (145.918) | (125.249) | (160.501) | (147.857) | (146.187) | (126.945) | |
| DEP | −19.625 (37.873) | −23.071 (35.637) | −19.181 (32.874) | −23.330 (31.545) | −20.644 (39.683) | −21.192 (37.941) |
| INTEREST | −83.160 | −83.70 | −82.340 | −88.476 | −85.845 | −78.908 |
| (114.590) | (114.485) | (107.616) | (107.056) | (121.345) | (123.240) | |
| CONSTANT | 629.476 | 695.460 | 619.396 | 704.287 | 651.841 | 641.385 |
| (795.492) | (757.405) | (684.116) | (664.359) | (823.512) | (795.324) | |
| YEAR FE | YES | YES | YES | YES | YES | YES |
| OBSERVATIONS | 442 | 442 | 442 | 442 | 442 | 442 |
| R-SQUARED | 0.147 | 0.177 | 0.147 | 0.171 | 0.147 | 0.168 |
| 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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