Heterogeneous dependence of the FinTech Index with Global Systemically Important Banks (G-SIBs)

Abstract

This paper aims to investigate the Granger causality relationship in quantile between the FinTech Index and globally systemically important banks (G-SIBs). The result was observed that at the median and under conditions of extreme quantiles in the FinTech Index, there was no Granger causality relationship between the FinTech Index and the vast majority of systemically important banks. Our research offered vital insights to regulatory agencies, highlighting the importance of monitoring market conditions at higher or lower quantiles to prevent the impact of financial technology on G-SIBs and to maintain global financial stability.