Third-party payments impact on commercial banks' non-interest income: evidence from China
Issued Date
2018
Issued Date (B.E.)
2561
Available Date
Copyright Date
Resource Type
Series
Edition
Language
eng
File Type
application/pdf
No. of Pages/File Size
60 leaves
ISBN
ISSN
eISSN
DOI
Other identifier(s)
b203294
Identifier(s)
Access Rights
Access Status
Rights
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Rights Holder(s)
Physical Location
National Institute of Development Administration. Library and Information Center
Bibliographic Citation
Citation
Xia, Huiwen (2018). Third-party payments impact on commercial banks' non-interest income: evidence from China. Retrieved from: http://repository.nida.ac.th/handle/662723737/4074.
Title
Third-party payments impact on commercial banks' non-interest income: evidence from China
Alternative Title(s)
Author(s)
Advisor(s)
Editor(s)
item.page.dc.contrubutor.advisor
Advisor's email
Contributor(s)
Contributor(s)
Abstract
This study aims to explore the effects of Chinese third-party payment on commercial banks' non-interest income over the period 2008-2017. In China, third-party payment is a digital payment provided by private non-bank firms that consist of desktop payment and mobile payment. More Chinese people prefer to use third-party payment, especially mobile payment, instead of cash and bank card as the payment can be transacted easily and safely on the mobile phone by scanning QR code. To find whether this new digital payment trend impacts on non-interest income or not, this paper first employs random effects panel data technique. The regression results show that for overall banks, higher desktop payment yields higher non-interest income, while the mobile payment deters the non-interest income. Then in order to check whether third-party payment exerts the effects differently across bank types, we include interaction terms and dummy variables in the regression. Findings show that from the perspective of bank types, small-medium commercial banks reap the positive spillover effects. But for large state-owned commercial banks, the non-interest income suffers a loss when desktop payment and mobile payment are growing. Based on the findings, the insightful policy implications are put forth for commercial banks' non-interest income expansion and profitability enhancement.
Keywords: digital payment, mobile payment, non-interest income, interaction terms, random effects model
Table of contents
Description
Thesis (M. Econ.)--National Institute of Development Administration, 2018