Does FinTech credit scale stimulate financial institutions to increase the proportion of agricultural loans?

FinTech has raised the risk-taking level of financial institutions. This paper aims to explore FinTech Credit (FTC) scale of non-financial institutions and the risk-taking level of financial institutions into Opiela’s model, constructs objective functions and constraints for representative financial...

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Main Authors: Akm Mohsin, MD Rashidul Islam Sheikh, Hasanuzzaman Tushar, Mohammed Masum Iqbal, Syed Far Abid Hossain, Md. Kamruzzaman
Format: Article
Language:English
Published: Taylor & Francis Group 2022-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2022.2114176
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author Akm Mohsin
MD Rashidul Islam Sheikh
Hasanuzzaman Tushar
Mohammed Masum Iqbal
Syed Far Abid Hossain
Md. Kamruzzaman
author_facet Akm Mohsin
MD Rashidul Islam Sheikh
Hasanuzzaman Tushar
Mohammed Masum Iqbal
Syed Far Abid Hossain
Md. Kamruzzaman
author_sort Akm Mohsin
collection DOAJ
description FinTech has raised the risk-taking level of financial institutions. This paper aims to explore FinTech Credit (FTC) scale of non-financial institutions and the risk-taking level of financial institutions into Opiela’s model, constructs objective functions and constraints for representative financial institutions by conducting theoretical analysis and research hypothesis. It also explores the relationship between FTCscale and the proportion of agriculture-related loans. Based on the balanced panel data of 31 provinces and municipalities in China from 2009 to 2017, the individual fixed effects model is used to test the research hypothesis. Then, based on the balanced panel data of 31 provinces and municipalities in China from 2009 to 2017, the research hypothesis was tested using an individual fixed-effects model to explore the relationship between FTCscale and the proportion of agriculture-related loans. The results show that the FTCscale can increase the share of agriculture-related loans in financial institutions. Still, the percentage of agriculture-related loans and e-commerce factors increase at a marginal decreasing rate. Furthermore, the study shows that marketization and real estate development also indirectly affect the proportion of agricultural loans through the mediating part of the FTCscale. Finally, policy recommendations are proposed to develop FTC and the implementation of rural revitalization strategy.
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institution DOAJ
issn 2332-2039
language English
publishDate 2022-12-01
publisher Taylor & Francis Group
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series Cogent Economics & Finance
spelling doaj-art-93924091439342b099accd8f989305852025-08-20T03:21:46ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2114176Does FinTech credit scale stimulate financial institutions to increase the proportion of agricultural loans?Akm Mohsin0MD Rashidul Islam Sheikh1Hasanuzzaman Tushar2Mohammed Masum Iqbal3Syed Far Abid Hossain4Md. Kamruzzaman5Faculty of Business and Entrepreneurship, Daffodil International University, Dhaka, BangladeshDepartment of Public Administration, Comilla University, Comilla, BangladeshCollege of Business Administration, IUBAT—International University of Business Agriculture and Technology, Dhaka, BangladeshFaculty of Business and Entrepreneurship, Daffodil International University, Dhaka, BangladeshAssistant Professor, BRAC Business School, BRAC University, Dhaka, BangladeshFaculty of Business and Entrepreneurship, Daffodil International University, Dhaka, BangladeshFinTech has raised the risk-taking level of financial institutions. This paper aims to explore FinTech Credit (FTC) scale of non-financial institutions and the risk-taking level of financial institutions into Opiela’s model, constructs objective functions and constraints for representative financial institutions by conducting theoretical analysis and research hypothesis. It also explores the relationship between FTCscale and the proportion of agriculture-related loans. Based on the balanced panel data of 31 provinces and municipalities in China from 2009 to 2017, the individual fixed effects model is used to test the research hypothesis. Then, based on the balanced panel data of 31 provinces and municipalities in China from 2009 to 2017, the research hypothesis was tested using an individual fixed-effects model to explore the relationship between FTCscale and the proportion of agriculture-related loans. The results show that the FTCscale can increase the share of agriculture-related loans in financial institutions. Still, the percentage of agriculture-related loans and e-commerce factors increase at a marginal decreasing rate. Furthermore, the study shows that marketization and real estate development also indirectly affect the proportion of agricultural loans through the mediating part of the FTCscale. Finally, policy recommendations are proposed to develop FTC and the implementation of rural revitalization strategy.https://www.tandfonline.com/doi/10.1080/23322039.2022.2114176FinTech creditrisk-taking levelagricultural loansmarketization level
spellingShingle Akm Mohsin
MD Rashidul Islam Sheikh
Hasanuzzaman Tushar
Mohammed Masum Iqbal
Syed Far Abid Hossain
Md. Kamruzzaman
Does FinTech credit scale stimulate financial institutions to increase the proportion of agricultural loans?
Cogent Economics & Finance
FinTech credit
risk-taking level
agricultural loans
marketization level
title Does FinTech credit scale stimulate financial institutions to increase the proportion of agricultural loans?
title_full Does FinTech credit scale stimulate financial institutions to increase the proportion of agricultural loans?
title_fullStr Does FinTech credit scale stimulate financial institutions to increase the proportion of agricultural loans?
title_full_unstemmed Does FinTech credit scale stimulate financial institutions to increase the proportion of agricultural loans?
title_short Does FinTech credit scale stimulate financial institutions to increase the proportion of agricultural loans?
title_sort does fintech credit scale stimulate financial institutions to increase the proportion of agricultural loans
topic FinTech credit
risk-taking level
agricultural loans
marketization level
url https://www.tandfonline.com/doi/10.1080/23322039.2022.2114176
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