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Small business owners’ Fintech credit in crises: Theory and evidence from farmers under the COVID-19
Pacific-Basin Finance Journal ; : 101692, 2021.
Article in English | ScienceDirect | ID: covidwho-1540888
ABSTRACT
This paper examines the COVID-19 impact on Chinese farmers’ peer-to-peer (P2P) borrowings using transaction-level data. Our difference-in-differences estimation results suggest that farmers from the most pandemic-affected region, Hubei province, substantially reduced their P2P loans by 13% compared to other areas. Besides, we find a significantly lower equilibrium interest rate change, indicating a more dominant force on the demand side. Finally, we evaluate the lockdown policy, showing that provinces with larger logistics capacities exhibit more considerable credit declines. Overall, our study suggests that Fintech lending functions as an alternative financing channel during the pandemic, though the demand shrinkage dominates the supply.

Full text: Available Collection: Databases of international organizations Database: ScienceDirect Language: English Journal: Pacific-Basin Finance Journal Year: 2021 Document Type: Article

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Full text: Available Collection: Databases of international organizations Database: ScienceDirect Language: English Journal: Pacific-Basin Finance Journal Year: 2021 Document Type: Article