FinTech and Financial Stability-Evidence from Peer-to-Peer Lending in China

Beginning from the first P2P platform in 2007, Chinese P2P lending market has become the largest in the world. Up to now, the  industry has been experiencing big changes for regulation. How does policy change impact on this nascent market in China?

Fabio BraggionAlberto Manconi and  Haikun Zhu exploit two policy interventions in the market for real estate mortgages in a number of major Chinese cities, which first increase (in 2013) and later reduce (in 2015) the demand for P2P lending, while leaving overall credit demand unchanged. They analyze P2P loan applications and credit outcomes around the two policy interventions, comparing affected and unaffected cities in a difference-in-differences setting. The test can provide comparatively clean empirical evidence on the capacity of P2P lending to lead to excessive levels of household debt and undermine policy interventions in the credit market. More broadly, it can inform the ongoing debate on FinTech and the regulatory challenges posed by the disintermediation of financial services.

Full paper see Here

2 thoughts on “FinTech and Financial Stability-Evidence from Peer-to-Peer Lending in China”

  1. I actually wanted to jot down a simple note in order to appreciate you for all of the superb instructions you are writing on this website. My extensive internet investigation has at the end of the day been rewarded with sensible insight to exchange with my co-workers. I ‘d mention that we visitors actually are undeniably fortunate to exist in a remarkable website with so many brilliant professionals with valuable ideas. I feel somewhat happy to have encountered the web page and look forward to so many more enjoyable times reading here. Thank you again for everything.

  2. I actually wanted to post a simple note to be able to thank you for those awesome secrets you are showing on this site. My particularly long internet look up has now been recognized with good quality concept to exchange with my companions. I ‘d repeat that we site visitors are extremely blessed to be in a wonderful network with very many wonderful professionals with useful opinions. I feel truly privileged to have used your website page and look forward to so many more enjoyable times reading here. Thanks again for everything.

Leave a Reply

Your email address will not be published.