FinTech Monopoly and Systemic Risk: Evidence From China
With the rapid development of FinTech, it is of great significance to gain comprehensive insights into its potential risks. This paper focuses on the financial risks brought by the FinTech monopoly. We take the listed FinTech companies in China as samples to build the FinTech monopoly index and the...
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| Format: | Article |
| Language: | English |
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SAGE Publishing
2024-12-01
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| Series: | SAGE Open |
| Online Access: | https://doi.org/10.1177/21582440241305450 |
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| _version_ | 1846120299604475904 |
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| author | Rui Wang Zhihao He Shunjing Yang |
| author_facet | Rui Wang Zhihao He Shunjing Yang |
| author_sort | Rui Wang |
| collection | DOAJ |
| description | With the rapid development of FinTech, it is of great significance to gain comprehensive insights into its potential risks. This paper focuses on the financial risks brought by the FinTech monopoly. We take the listed FinTech companies in China as samples to build the FinTech monopoly index and the systematic risk indicator, and the effect of the monopoly of Fintech companies on systematic risk is next analyzed using the fixed effect model. The results indicate that the FinTech monopoly will aggravate the systemic risk. Subsequently, the heterogeneous factors for the above nexus are investigated based on the micro characteristics of FinTech companies and the macro environment. On this basis, the mechanism of the above effect is also analyzed, and it is shown that the FinTech monopoly impacts systemic risk mainly via inducing excessive consumption, increasing banks’ credit risk, and inhibiting the development of FinTech. |
| format | Article |
| id | doaj-art-9e5c9c945f1c4661a7c74adb2bcb7868 |
| institution | Kabale University |
| issn | 2158-2440 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | SAGE Open |
| spelling | doaj-art-9e5c9c945f1c4661a7c74adb2bcb78682024-12-16T12:04:19ZengSAGE PublishingSAGE Open2158-24402024-12-011410.1177/21582440241305450FinTech Monopoly and Systemic Risk: Evidence From ChinaRui Wang0Zhihao He1Shunjing Yang2School of Economics, Xihua University, Chengdu, ChinaSchool of Economics, Xihua University, Chengdu, ChinaSchool of Economics, Xihua University, Chengdu, ChinaWith the rapid development of FinTech, it is of great significance to gain comprehensive insights into its potential risks. This paper focuses on the financial risks brought by the FinTech monopoly. We take the listed FinTech companies in China as samples to build the FinTech monopoly index and the systematic risk indicator, and the effect of the monopoly of Fintech companies on systematic risk is next analyzed using the fixed effect model. The results indicate that the FinTech monopoly will aggravate the systemic risk. Subsequently, the heterogeneous factors for the above nexus are investigated based on the micro characteristics of FinTech companies and the macro environment. On this basis, the mechanism of the above effect is also analyzed, and it is shown that the FinTech monopoly impacts systemic risk mainly via inducing excessive consumption, increasing banks’ credit risk, and inhibiting the development of FinTech.https://doi.org/10.1177/21582440241305450 |
| spellingShingle | Rui Wang Zhihao He Shunjing Yang FinTech Monopoly and Systemic Risk: Evidence From China SAGE Open |
| title | FinTech Monopoly and Systemic Risk: Evidence From China |
| title_full | FinTech Monopoly and Systemic Risk: Evidence From China |
| title_fullStr | FinTech Monopoly and Systemic Risk: Evidence From China |
| title_full_unstemmed | FinTech Monopoly and Systemic Risk: Evidence From China |
| title_short | FinTech Monopoly and Systemic Risk: Evidence From China |
| title_sort | fintech monopoly and systemic risk evidence from china |
| url | https://doi.org/10.1177/21582440241305450 |
| work_keys_str_mv | AT ruiwang fintechmonopolyandsystemicriskevidencefromchina AT zhihaohe fintechmonopolyandsystemicriskevidencefromchina AT shunjingyang fintechmonopolyandsystemicriskevidencefromchina |