Fintech and the economic capital of Chinese commercial bank's risk: Based on theory and evidence

Abstract This article examines the impact of “finance + technology” (Fintech) on different sizes of banks economic capital through the application of Fintech perspective in China during the period January 2011 and September 2019, using a dynamic panel generalized method of moments (GMM) estimation technique. The study found compared with small and medium‐sized banks, large state‐owned commercial banks have advantages in scale, capital and experience. There is a negative correlation between the scale of assets of commercial banks and economic capital. Further tests reveal the impact of Fintech on the profitability of different types of commercial banks shows significant heterogeneity.