This study investigates the influence of fintech on developments in China’s financial sector across 290 cities and 31 provinces between 2011 and 2018.Using a two-stage least squares instrumental variable regression a...This study investigates the influence of fintech on developments in China’s financial sector across 290 cities and 31 provinces between 2011 and 2018.Using a two-stage least squares instrumental variable regression approach and correcting for cross-sectional dependency,simultaneity,and endogeneity of regressors,the results establish a positive link between fintech and financial development.Our findings show that fintech supports financial sector development by enhancing access(loans),depth(deposits),and savings within China’s financial institutions.We also show that the emergence of fintech in the area of financial regulation(regulatory technology:regtech)can significantly improve financial development outcomes.Therefore,it is imperative for regulators to pursue policies that balance growth in the fintech sector while mitigating the associated risks.In addition,we use the difference-in-differences approach to show that policy measures such as interest rates liberalization also positively impacted finan-cial development during the analysis period.In our conclusion,we suggest a policy framework for balanced fintech sector growth in developing countries.展开更多
As a disruptive innovation,FinTech has posed risks in the financial industry that are more unidentifiable,sweeping,disruptive and influential.Given these new developments,deeper regulatory reform has become necessary ...As a disruptive innovation,FinTech has posed risks in the financial industry that are more unidentifiable,sweeping,disruptive and influential.Given these new developments,deeper regulatory reform has become necessary to safeguard national financial security,and prevent and dissolve financial risks.On March 11,2021,the 14th Five-Year Plan'endorsed by the Fourth Session of the 13th National People's Congress stressed that China will improve the modern financial regulatory system and shore up our weaknesses in the regulatory system,and boost the application of regulatory technology and financial innovation risk assessment.This marks that the establishment of a technology-driven financial regulatory framework has been put on the agenda.Based on an analysis of the essential implications and drivers of RegTech innovation,this paper discusses the theoretical logic of RegTech innovation.Technology enables intelligent regulatory processes,efficient information processing and robust risk control.The restructuring of the regulatory system has revealed shifts in regulatory paradigms.These include a shift from passive response to proactive change,a shift toward positive interactions between regulators and industry players,as well as more close coordination among regulators.These changes have resulted in more adaptable and efficient regulation.After summarizing foreign experience and Chinese practice,this paper presents optimal pathways for RegTech innovation in China in the following aspects:consolidating the rule-of-law foundation for RegTech innovation,speeding up institutional reforms,improving policy services,strengthening infrastructure development,and building multiparty cooperation mechanisms.This study serves as a reference for building a technology-centric modern financial regulatory system and a sound environment forFinTechdevelopment.展开更多
基金the National Natural Science Foundation of China(71774071)the National Statistical Science Research Project(2021LY055)+2 种基金Jiangsu Soft Science Research Project(BR2021030)Zhenjiang Soft Science Research Project(RK2021010)the Key Academic Research Project of Jiaxing University(ICCPR2021007)is highly appreciated by researchers of this study.
文摘This study investigates the influence of fintech on developments in China’s financial sector across 290 cities and 31 provinces between 2011 and 2018.Using a two-stage least squares instrumental variable regression approach and correcting for cross-sectional dependency,simultaneity,and endogeneity of regressors,the results establish a positive link between fintech and financial development.Our findings show that fintech supports financial sector development by enhancing access(loans),depth(deposits),and savings within China’s financial institutions.We also show that the emergence of fintech in the area of financial regulation(regulatory technology:regtech)can significantly improve financial development outcomes.Therefore,it is imperative for regulators to pursue policies that balance growth in the fintech sector while mitigating the associated risks.In addition,we use the difference-in-differences approach to show that policy measures such as interest rates liberalization also positively impacted finan-cial development during the analysis period.In our conclusion,we suggest a policy framework for balanced fintech sector growth in developing countries.
基金supported by a grant from the National Social Science Fund of China(No.20FJYB052)a grant from the Industry-University-Research Innovation Fund of the Center for Science and Technology Development of the Ministry of Education(No.2019J01009)+1 种基金a grant from Shaanxi Soft Science Research Plan(No.2021KRM151)a grant from Xi'an Social Science Fund Planning(No.19J31).
文摘As a disruptive innovation,FinTech has posed risks in the financial industry that are more unidentifiable,sweeping,disruptive and influential.Given these new developments,deeper regulatory reform has become necessary to safeguard national financial security,and prevent and dissolve financial risks.On March 11,2021,the 14th Five-Year Plan'endorsed by the Fourth Session of the 13th National People's Congress stressed that China will improve the modern financial regulatory system and shore up our weaknesses in the regulatory system,and boost the application of regulatory technology and financial innovation risk assessment.This marks that the establishment of a technology-driven financial regulatory framework has been put on the agenda.Based on an analysis of the essential implications and drivers of RegTech innovation,this paper discusses the theoretical logic of RegTech innovation.Technology enables intelligent regulatory processes,efficient information processing and robust risk control.The restructuring of the regulatory system has revealed shifts in regulatory paradigms.These include a shift from passive response to proactive change,a shift toward positive interactions between regulators and industry players,as well as more close coordination among regulators.These changes have resulted in more adaptable and efficient regulation.After summarizing foreign experience and Chinese practice,this paper presents optimal pathways for RegTech innovation in China in the following aspects:consolidating the rule-of-law foundation for RegTech innovation,speeding up institutional reforms,improving policy services,strengthening infrastructure development,and building multiparty cooperation mechanisms.This study serves as a reference for building a technology-centric modern financial regulatory system and a sound environment forFinTechdevelopment.
