•Digital economy promotes the modernization of industrial structure by influencing the rationalization and upgrading of industrial structure through technical level and factor level.•This paper uses ...panel data from 31 jurisdictions in China to conduct empirical analysis, and finds that digital economy development shows a year-on-year rising trend, and there is a large gap between different regions.•The conclusion still holds after the robustness test and regional heterogeneity analysis, thus enriching the understanding of mechanisms and regional differentiation of digital economy, credit expansion on industrial structure modernization.
Digital economy promotes the modernization of industrial structure by influencing the rationalization and upgrading of industrial structure through technical level and factor level; while excessive credit expansion hinders the modernization of industrial structure. This paper uses panel data from 31 jurisdictions in China to conduct empirical analysis, and finds that digital economy development shows a year-on-year rising trend, and there is a large gap between different regions. The conclusion still holds after the robustness test and regional heterogeneity analysis, thus enriching the understanding of mechanisms and regional differentiation of digital economy, credit expansion on industrial structure modernization.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
We explore the impact of financial technology (fintech) advancements on green credit provision, investigating publicly traded banks in China from 2007 to 2022. We particularly focus on credit ...modelling innovation, examining the non-linear dynamics between fintech evolution and green credit distribution. Results reveal a positive U-shaped correlation. Initial stages of fintech are associated with increased green credit risk, negatively affecting the volume of green credit. However, more established fintech infrastructures significantly enhance green credit volumes by improving resource allocation and credit risk assessment. Utilizing a multiple linear regression approach, we highlight the transformative nature of fintech in advancing sustainable banking practices, particularly through innovations in credit modeling that enhance green credit risk management and resource allocation efficiency.
Display omitted
•This paper explores the cutting-edge interplay between advancements in fintech and their influence on the provision of green credit within China’s banking sector.•It examines the intricate and non-linear dynamics between the evolution of fintech and the distribution of green credit.•Findings suggest that in the initial stages of fintech maturity, there is an associated increase in green credit risk, which negatively impacts the volume of green credit.•As fintech infrastructure becomes more sophisticated, it significantly enhances the volumes of green credit.•The paper emphasizes the transformative role of fintech in advancing sustainable banking practices.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
We examine the effects of the Universal Credit expansion and mortgage forbearance on the financial well-being of United Kingdom (UK) residents during the pandemic. Using anonymized individual-level ...consumer financial data on 2 million UK consumers, each with one or more defaulted accounts accrued before the pandemic, we found that average nonmortgage debt increased by 17% from October 2019 (£5497) to December 2021 (£6456). Using a difference-in-difference approach, we found mixed policy impacts on the debt people carried. Although the expansion of Universal Credit was intended to help financially vulnerable families, consumers who were more likely to benefit from the Universal Credit expansion took on 1% more total nonmortgage debt after the policy expansion. By contrast, during the period of mortgage forbearance, mortgage holders accumulated 1% less total nonmortgage debt compared to nonmortgage holders. These results suggest that policies implemented in the UK to protect financially vulnerable families were insufficient to prevent beneficiaries from accumulating additional debt during the pandemic.
•Average nonmortgage debt increased by 17% from 2019 to 2021 for UK consumers who defaulted before the pandemic.•UK consumers who were more likely to receive the Universal Credit expansion took on 1% more total nonmortgage debt.•During mortgage forbearance, UK mortgage holders accumulated 1% less total nonmortgage debt.•Our results suggest UK's COVID-19-era economic policies were insufficient to prevent beneficiaries from accumulating debt.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
This paper studies the link between credit availability and student loan repayment using administrative federal student loan data. We demonstrate that policy-driven changes in credit available to ...high-default institutions explain almost all of the historical time-series variation in defaults. Between 1981 and 1988, eligibility for federal loans was expanded, leading to the entry of institutions with borrowers more likely to default. From 1988 to 1992, credit access was tightened, leading to the exit of many institutions with high default rates. After 1992, the cycle was repeated, with credit access gradually loosened by unwinding many of the pre-1992 reforms.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
This study created a new financial technology (Fintech) development index by combining the PKU-DFIC index with data from Fintech companies collected manually through the ‘TianYanCha’ credit platform. ...By matching the index with data on listed enterprises, we analysed the impact of Fintech development on green innovation in businesses and explored the underlying pathways of ‘credit expansion’ and ‘fiscal expansion’. Our findings reveal that firms located in cities with advanced levels of Fintech development obtain larger scale and greater efficiency in green innovation. Furthermore, the results of the exploration of impact pathways show that Fintech development increases the size of credit in the city as well as the government's fiscal support for businesses. Fintech enables enterprises to achieve higher performance of green innovation through these two pathways. The methodology used to construct the Fintech indicators and conduct this study provides more precise insights into the relationship between Fintech development and the environmentally focused development of the real economy.
•Examining the impact of Fintech development on corporate green innovation.•A positive linear relationship between them was found.•Credit expansion and fiscal expansion are pathways for this impact.•Some policy recommendations on promoting green innovation with Fintech development.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
The article considers the downward spiral of deflation, its causes and consequences. The paper discusses the compression of aggregate demand and the subsequent recession. The study discloses the ...content of the liquidity trap created by the behavior of borrowers. The author traces the connection between the events of the “lost decades” in Japan and the stagnation of production in leading Western countries after the global financial crisis. In both cases, the large-scale use of fiscal and monetary incentives did not cause a sharp rise in business activity. The paper concludes that the operation of the market mechanism is blocked by budget and monetary policies. Obstacles to entrepreneurial activity and energy lead to the loss of necessary information generated by market agents. This circumstance prolongs the stagnation of the economy.
The aim of this paper is to analyse the impact of the credit expansion process on social welfare through the financial-monetary dimension with a focus on 22 economies from the European Union. In ...order to achieve this aim, the study seeks, on the one hand, to analyse the short-term dynamics (from one quarter to the other) of the relationships between the total volume of domestic credit to private sector (highlighting thus the credit expansion process) and the GDP per capita (the proxy for social welfare) and, on the other hand, to determine the impact of credit expansion on social welfare on medium and long term using the multiple regression model. The findings revealed that even the correlation between the credit expansion and social welfare is very strong and positive in almost all the analysed countries, the total volume of domestic credit to private sector influences unidirectionally the GDP per capita in only 11 of the 22 states. However, on medium and long term, the credit expansion process has a positive effect on social welfare in all the analysed EU countries.
Full text
Available for:
CEKLJ, NUK, ODKLJ, UL, UM, UPUK
Purpose: Diversification by the majority of the banks in a system contribute to the progression of systemic risk on one hand and affects the lending behaviors of the banks on the other. Since lending ...behaviors of the banks directly affect the availability of credit to the non-financial sector, the situation may worsen, as a consequence of systemic risk. In this study, we examine the relationship between asset commonality and credit expansion by commercial banks in Pakistan.
Design/Methodology/Approach: We use post-global financial crisis data ranging from 2011-2020. A dynamic model is employed with a two-step system GMM technique to control for the problems of autocorrelation and endogeneity, as indicated by the pre-diagnostic tests.
Findings: Our results show that asset commonality significantly affects credit expansion by banks in Pakistan. Moreover, the direction of the relationship is negative implying that the asset commonality of the banks in Pakistan, induces banks on the individual level to contract credit to the non-financial sector.
Implications/Originality/Value: The findings are helpful for policymakers to devise and implement a prudent regulatory framework for the monetary sector, by not only targeting risk indicators of the financial sector but also keeping in view its repercussions to the real sector of the economy.
The role of debt in aggregate demand Xing, Xiaoyun; Xiong, Wanting; Guo, Jinzhong ...
Finance research letters,
March 2021, 2021-03-00, Volume:
39
Journal Article
Peer reviewed
•We construct a simple macroeconomic model aiming to decomposing aggregate demand.•Besides money, debt has its separate channels in formation of aggregate demand.•National income comes from money ...circulation, debt circulation and credit expansion.•Public debt contributes to aggregate demand only through its expansion.
With the purpose of performing a simple and original analysis on the mechanisms through which money and debt affect aggregate demand, this paper presents a stock-flow-consistent model in which the role of credit creation of banks is emphasized. By conducting theoretical analysis on income determination in an alternative way, we demonstrate that the equilibrium national income can be expressed as flows generated from three sources, namely money circulation, private debt circulation, and total credit expansion.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
The duality of process of accumulation, representing saving of money, behind which there are natural and material elements of the productive capital has been considered. At limitation of resources ...the volume of savings can be increased only by reduction of current expenses. The consequences of credit expansion, which are not supported by voluntary savings, have been analyzed. Communication between inflation and distortion of production structure of economy has been traced. Relationship of the arising disproportions and deflation has been revealed. The conclusion has been made about violation of unity of monetary and commodity flows as main reason of cyclic fluctuations.
PDF
