Investigating implementation of fintech technologies and systemic risks in the banking network

Subject Areas :

rahman rahimi ¹ , fatemeh sarraf ² , mahbobeh jafari ³ , bijan safavi ⁴

1 - Azad university
2 - عضو هیات علمی
3 - Azad university
4 - Azad university

Received: 2023-08-10 Accepted : 2023-08-10 Published : 2023-05-22

Keywords: risk management, Bank, Systemic Risk, Fintech,

Abstract :

Fintech affects banks' risk management, and banks tend to improve the level of Fintech in their financial system by increasing risks; Liquidity, credit and systemic risks are the most important risks identified in the banking industry, but what causes the collapse of the entire banking system; Systemic risk is caused by the nature of the spread of this risk from one bank to other banks. Systemic risk occurs when the instability of one financial institution spreads to others, potentially causing a domino effect that can lead to broader economic effects. Identifying systemic risk is very important for monetary and financial supervisory organizations. The deployment and development of fintech has significantly affected banking systems. Increased systemic risk can hinder support for sustainable global development, especially in emerging economies. There are several indicators to calculate this risk; Among these indicators, we can refer to conditional value at risk (CoVaR), TENET (developed CoVaR model), final expected deficit (MES), systemic expected deficit (SES), systemic risk (SRISK), epidemic models (SIR). The results of the conducted research indicate the high level of systemic risk in Iran; Also, according to research, the amount of this risk is higher in state banks than in private banks. It should be noted that all three categories of intra-company, extra-company variables and diversification of bank income and assets (bank portfolio management) have a significant effect on systemic risk; This indicates the complexity of the dimensions of the formation of this type of risk.