How FinTech Enters China's Credit Market
AEA Papers and Proceedings
vol. 109,
May 2019
(pp. 60-64)
Abstract
How does FinTech credit mitigate local credit supply frictions in China's segmented credit market? In our simple theoretical models, we show that FinTech credit (i) expands the extensive margin of credit to borrowers of lower credit scores and (ii) provides relatively more credit to borrowers with lower credit scores. We confirm both predictions based on comprehensive data from one of China's largest FinTech credit providers.Citation
Hau, Harald, Yi Huang, Hongzhe Shan, and Zixia Sheng. 2019. "How FinTech Enters China's Credit Market." AEA Papers and Proceedings, 109: 60-64. DOI: 10.1257/pandp.20191012Additional Materials
JEL Classification
- E51 Money Supply; Credit; Money Multipliers
- G23 Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- O16 Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- P34 Socialist Institutions and Their Transitions: Financial Economics