Abstract

Using a sample of 26 commercial banks from Vietnam over the period 2012-2022, this study examines the impact of Fintech firms’ progress on bank risk. The results show that the development of Fintech companies positively affects bank performance but triggers higher bank risk. Furthermore, robustness test consistently indicates that Fintech firms negatively affect bank financial stability. The empirical findings propose several implications for regulators, policymakers, and bank managers to formulate strategies for managing Fintech development and bank risk.

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