Fintech, macroprudential policies and bank risk taking: Evidence from Vietnam

Abstract

Academic research has given considerable focus to the effects that fintech has had on the banking industry. This research investigates the correlation among fintech, macroprudential policies, and commercial bank risk-taking. Based on a total of 29 banks were selected for the study, resulting in 290 observations from 2012 to 2021. A panel data regression model was employed in the research to test the two hypotheses mentioned in the research. The study collected banking data from the financial statements of 29 Vietnamese banks between 2012 and 2021. Additionally, macro data was collected from the iMaPP database of the International Monetary Fund's Macroprudential Policy Database. The result has shown that there is a direct link between the adoption of financial technology (FinTech) and the level of risk-taking among banks. And according to the result, there is a negative correlation between the adoption of FinTech and the level of risk-taking by banks. However, the relationship between FinTech adoption and bank risk-taking is not statistically significant when taking into account macroprudential policies.