How FinTech Enters China's Credit Market
AbstractHow does FinTech credit mitigate local credit supply frictions in China's segmented credit market? In our simple theoretical models, we show that FinTech credit (i) expands the extensive margin of credit to borrowers of lower credit scores and (ii) provides relatively more credit to borrowers with lower credit scores. We confirm both predictions based on comprehensive data from one of China's largest FinTech credit providers.
CitationHau, Harald, Yi Huang, Hongzhe Shan, and Zixia Sheng. 2019. "How FinTech Enters China's Credit Market." AEA Papers and Proceedings, 109: 60-64. DOI: 10.1257/pandp.20191012
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