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Abstract

The financial system has witnessed significant changes in recent years, including the introduction of post-crisis financial regulatory reforms and a notable increase in the use of financial technology (fintech) in the provision of financial services. This thesis delves into various aspects of both fintech and banking regulation advancements.
The first chapter provides an in-depth analysis of the impact of the 2014 bail-in regulation on banks’ credit ratings in the Eurozone. The empirical analysis suggests that bank ratings faced downward pressure and displayed increased uniformity across CRAs post-bail-in implementation.
The second chapter examines trends in equity funding for financial technology firms (fintechs) and the underlying country-specific drivers. Fintechs have raised over $1 trillion in equity globally since 2010. While the investment landscape was initially quite concentrated, it has become more diverse, both geographically and across market segments. Regression analysis points to the positive impact of the quality of regulation and targeted policies in promoting innovation.
Chapter three narrows its focus to Central America, Panama, and the Dominican Republic (CAPDR), analysing digital and non-digital remittance fees over time and across countries. Data reveal declining fees overall but higher costs in CAPDR countries compared to others. Regression analysis indicates that expanding financial access through digital means can help reducing transaction costs.
Chapter four shifts focus to online mortgages in the U.S. and examines if there are differences in the transmission mechanism of monetary policy between fintech and non-fintech credit. The analysis reveals that fintech lenders accelerate the transmission of monetary policy to mortgage rates but dampen the effect on mortgage volumes. The differential impact of changes in monetary conditions cannot be explained by lenders or borrowers’ characteristics, nor by time-variant geographical features, suggesting a fintech lending channel of monetary policy likely driven by the technological advancements unique to fintech lenders. The topics covered in the four chapters are relevant from a policy and regulatory standpoint.

Publication Type:	Thesis (Doctoral)
Subjects:	H Social Sciences > HG Finance T Technology > T Technology (General)
Departments:	Bayes Business School > Bayes Business School Doctoral Theses Bayes Business School > Finance Doctoral Theses

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