Bridging the credit gap: The influence of regional bank structure on the expansion of peer-to-peer lending
研究了传统银行覆盖不足的区域如何促进P2P借贷增长，并发现P2P借贷扩张能降低违约风险、改善借款人信用评分。
This paper investigates the extent to which the regional credit market structures, characterized by the presence and lending capacity of traditional banks, shape the growth of online lending marketplaces using peer-to-peer (P2P) lending data. Using an instrumental variables (IV) approach, our study suggests that areas underserved by traditional banks witness more significant growth in P2P lending. This impact is more pronounced in regions with a lower presence of small bank outreach. Furthermore, we find that an increase in P2P lending is associated with a reduced risk of borrower default. Our findings also show that the expansion of online lending marketplaces positively impacts borrowers’ financial well-being by improving their credit scores.