Author(s)

Ziyi Wei

Corresponding Author

Ziyi Wei

ABSTRACT

Through the analysis of bank data from 2011 to 2019, this paper studies the impact of fintech development on the real economy from the perspective of enterprise financing, and its mechanism from the perspectives of total factor productivity and bank risk. The empirical results show that the fintech development will not significantly increase supply of bank loans to the real economy. The possible reason for it is that in the early period of development, fintech promotes bank total factor productivity to increase the supply of loanable funds, while it also improves the bank's capital risk and reduces its willingness to support the real economy. And in the late stage, financial development has the opposite result, also result in fintech does not increase banks’ support for the real economy. In addition, the heterogeneity analysis indicates that fintech has different transmission mechanisms for state-owned banks and non-state-owned banks to serve the real economy and finally produces different effects. Fintech can significantly improve the credit support of state-owned banks to the real economy, but has no significant impact on non-state-owned banks.

KEYWORDS

Fintech, Real Economy, Total Factor Productivity, Capital Risk