Banks’ shadow activities and Fintech adoption: Implications for complexities, risk exposure, and the cost of debt

Zhang, Qiwen 2025. Banks’ shadow activities and Fintech adoption: Implications for complexities, risk exposure, and the cost of debt. PhD Thesis, Cardiff University. Item availability restricted.

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Abstract

This thesis explores the prevailing trends of banks’ shadow activities and Fintech adoption, examining their combined influences on risk management and borrowing firms. As the landscape of shadow banking evolves and rapid advancements in Fintech continue, the banking sector faces both opportunities and challenges. This research assesses how banks’ utilization of both shadow activities and Fintech innovations impacts their risk exposure and broader economic implications. The first study analyzes the risk profiles associated with banks’ shadow activities, highlighting how the complexity of banks’ business and organizational structures can exacerbate vulnerabilities, despite initial reductions in risk through off-balance-sheet exposures. The second study examines the interplay between Fintech adoption and banks’ shadow activities, demonstrating that technological innovations can simultaneously lower risk while also increasing it when combined with shadow banking. The third study assesses the impact of Fintech on the cost of bank debt for borrowing firms, revealing that technological advancements reduce information asymmetries, thereby benefiting these firms by lowering their borrowing costs. Ultimately, this thesis contributes to existing literature by providing comprehensive insights into the dual dynamics of shadow banking and Fintech. It underscores the need for effective regulatory frameworks that balance the innovative trends in the banking industry with stability and encourages a rethinking of the future role of traditional banks in the financial system.

Item Type:	Thesis (PhD)
Date Type:	Completion
Status:	Unpublished
Schools:	Schools > Business (Including Economics)
Date of First Compliant Deposit:	1 December 2025
Last Modified:	01 Dec 2025 16:51
URI:	https://orca.cardiff.ac.uk/id/eprint/182773

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