Examining the Impact of Fintech Lending and Capital Regulatory Requirements on Bank Stability: A Study of Developed and Developing Countries

Authors

  • Muhammad Tanvir Baig Mphill Scholar, Lahore School of Accountancy and Finance, University of Lahore, mtb2992009@hotmail.com
  • Wajid Alim* Assistant Professor, Lahore School of Accountancy and Finance, University of Lahore, Corresponding Author, wajid@uolcc.edu.pk
  • Saleh Nawaz Khan Assistant Professor, Cholistan IBA, Cholistan University of Veterinary & Animal Sciences, Bahawalpur salehnawaz@cuvas.edu.pk
  • Babur Baig Mitaly Dean of Islamic Study Department, Govt Degree College, Satellite Town, Gujranwala drbaburbaigmitaly@gmail.com
  • Shahid Manzoor Shah Assistant Professor, Lahore School of Accountancy and Finance, University of Lahore, Email: shahidmanzoorphd@gmail.com

DOI:

https://doi.org/10.70670/sra.v3i2.694

Keywords:

Fin-tech lending, bank capital, bank stability, bank concentration, total assets, non-performing loans, GDP, inflation, Basel III

Abstract

Fin-tech plays a vital role in the modern age, it creates a revolution in the financial sector. Fin-tech provides the services the financial industry offers through its new technology, innovations, and unique platform to the population at their doorstep. After the financial crisis of 2008, the Basel Committee introduced Basel-III for the financial sector to ensure there was enough capital for the financial institutions to meet their daily needs and maintain the strongest position per the financial market's desire. The study aims to investigate whether or not fintech is a danger to bank stability. Is it dangerous for financial institutions to maintain their capital as Basel-III requires? This study conducts different statistical tests to overcome the exact situation and effects of fintech and bank capital requirements, blessings, or danger zones for financial institutions in the modern era. The statistical results reveal that financial institutions must adopt modern technology as fintech companies have provided in the contemporary era. Traditional banks are in a dangerous zone due to this healthy and tough competition in the form of fintech and Basel-III requirements, which are swords at the neck of financial institutions. The regulator and policymakers must take the necessary steps to make the desired regulation changes so that traditional banks can benefit from the new technology and keep themselves alive in the financial market.

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Published

23-05-2025

How to Cite

Muhammad Tanvir Baig, Wajid Alim*, Saleh Nawaz Khan, Babur Baig Mitaly, & Shahid Manzoor Shah. (2025). Examining the Impact of Fintech Lending and Capital Regulatory Requirements on Bank Stability: A Study of Developed and Developing Countries. Social Science Review Archives, 3(2), 1040–1052. https://doi.org/10.70670/sra.v3i2.694