Original scientific paper
https://doi.org/10.1080/1331677X.2021.1970606
Quantitative measurement and analysis of FinTech risk in China
Cangshu Li
Abstract
This study took online lending as the main research object to
quantitatively measure FinTech risk in China. A theoretical model
was built to analyse the relationship between the assets and
liabilities of peer-to-peer platforms and the risk of the entire
online lending industry. The conditional value at risk method was
used to measure the risk spillover effect of the online lending
industry and the different types of platforms. Index smoothing
and moving average were used to examine risk contagion. When
the risk rate of the portfolio of the platform generally increases,
the systemic risk of the whole industry also increases, and if the
systemic risk of the industry spreads to the portfolio of the platform, it could affect the stability of the capital flow of the platform, and then affect the risk expectation of the platform itself.
Most platforms with risk concerns were private. Banking platforms
and public platforms were greatly affected by market risk; however, their own risks had relatively little impact on the overall
market. The greater the market risk, the more platforms become
risk platforms, and the smaller the impact on transition platforms.
Regulatory sandboxes may be an effective means of preventing
and controlling Fintech risks.
Keywords
Conditional value at risk; FinTech; peer-to-peer; P2P; risk; conditional value at risk method
Hrčak ID:
302289
URI
Publication date:
31.3.2023.
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