Bank non-performing loans in the fintech era. (14th July 2022) - Ozili, Peterson K.
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.