Title: Bank non-performing loans in the fintech era

Authors: Peterson K. Ozili

Addresses: Central Bank of Nigeria, Plot 33, Tafawa Balewa Way, Central Business District, Abuja, Nigeria

Abstract: This study investigates the behaviour of bank non-performing loans in the fintech era. Using data from 35 developed countries from 1998 to 2016, the findings show that non-performing loans are fewer in the second wave of the fintech era. Also, bank non-performing loans are positively related to the state of the business cycle in the second wave fintech era. Countries that have high supply of credit to the private sector experience high non-performing loans in the second wave fintech era. The two-way interaction analysis shows that non-performing loans are lower during times of economic boom and when there is higher credit supply in the second-wave fintech era.

Keywords: non-performing loan; financial innovation; disruptive technology; legal system; banks; fintech; banks; credit risk; fintech era.

DOI: 10.1504/IJFIB.2022.124197

International Journal of Financial Innovation in Banking, 2022 Vol.3 No.2, pp.95 - 112

Received: 19 Oct 2020
Accepted: 31 Jul 2021
Published online: 18 Jul 2022 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article