About this Social Sciences article
The Role of Fintech on Bank Risk-Taking: Mediating Role of Bank’s Operating Efficiency by Rabbia Sajid; Huma Ayub; Bushra F. Malik; Abida Ellahi is a Social Sciences article available to read on EtoBox.
Fintech revolutionized the traditional banking business models in emerging countries. The effect of fintech on banks' operating efficiency and risk-taking behavior is still inconclusive. The study is aimed at exploring the effect of fintech products on banks' operating efficiency and risk-taking behavior. The study used a quantitative research approach by collecting secondary data from annual reports of 50 commercial banks from emerging countries, namely, China, India, Pakistan, and Bangladesh, for the period 2014 to 2021. The study used panel data for path analysis and structural equation modeling (SEM) to test the theoretical mediation model by using STATA. The results show that the fintech product reduces the bank's risk-taking behavior by enhancing the bank's operating efficiency. The path analysis results show that operating efficiency mediates the relationship between fintech products and bank risk-taking behavior in emerging countries. The paper offers useful recommendations for central bank and commercial bank policymakers. The study is also beneficial for commercial banks that use fintech solutions to increase operational effectiveness and reduce risk. The study is the fir
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- Author
- Rabbia Sajid; Huma Ayub; Bushra F. Malik; Abida Ellahi
- Publisher
- Hindawi Limited
- Published
- 2023
- Language
- EN
- Field
- Social Sciences