The impact of fintech peer-to-peer lending and Islamic banks on bank performance during COVID-19

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This study delves into the influence of Peer-to-Peer (P2P) Fintech lending on bank performance in Indonesia, with a specific focus on its effects on Islamic banks both before and during the COVID-19 pandemic. Employing a fixed-effects model, unbalanced panel data from 121 banks, including 16 Islamic banks, were analyzed. The findings unveil a significant and positive impact of growth loan disbursement to borrowers from P2P lending on bank performance, particularly in terms of return on assets. Additionally, Islamic Banks exhibit a significant and favorable effect on overall bank performance. Conversely, the joint interaction between P2P lending and Islamic Banks demonstrates a negative and significant influence on Islamic bank performance, suggesting that while P2P lending may benefit conventional banks, it adversely affects Islamic banks. Furthermore, this negative impact is exacerbated during the COVID-19 period. These outcomes underscore the importance of collaboration or strategic alliances between P2P lending platforms and Islamic banks, particularly in the context of the COVID-19 pandemic.

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    • Table 1. Dependent, independent, and control variables
    • Table 2. Descriptive statistics
    • Table 3. Correlation matrix
    • Table 4. Peer-to-Peer fintech lending, Islamic bank and bank performance
    • Table 5. Peer-to-Peer fintech lending, Islamic bank and bank performance – Before vs during COVID-19
    • Table 6. Joint impact of Peer-to-Peer fintech lending and Islamic banks
    • Table 7. Joint impact of Peer-to-Peer fintech lending and Islamic banks – Before vs during COVID-19
    • Conceptualization
      Sri Wahyuni, Rizky Yudaruddin
    • Funding acquisition
      Sri Wahyuni, Rizky Yudaruddin
    • Methodology
      Sri Wahyuni, Rizky Yudaruddin
    • Validation
      Sri Wahyuni, Muh Shadiqul Fajri AF
    • Writing – review & editing
      Sri Wahyuni, Rizky Yudaruddin
    • Formal Analysis
      Abiyajid Bustami, Rinna Ramadhan Ain Fitriah, Muh Shadiqul Fajri AF
    • Investigation
      Abiyajid Bustami, Rinna Ramadhan Ain Fitriah, Rizky Yudaruddin
    • Project administration
      Abiyajid Bustami, Rinna Ramadhan Ain Fitriah, Muh Shadiqul Fajri AF
    • Software
      Abiyajid Bustami, Rinna Ramadhan Ain Fitriah, Muh Shadiqul Fajri AF
    • Supervision
      Abiyajid Bustami, Rinna Ramadhan Ain Fitriah, Rizky Yudaruddin
    • Visualization
      Abiyajid Bustami, Rinna Ramadhan Ain Fitriah, Muh Shadiqul Fajri AF
    • Writing – original draft
      Abiyajid Bustami, Rinna Ramadhan Ain Fitriah, Muh Shadiqul Fajri AF
    • Data curation
      Muh Shadiqul Fajri AF, Rizky Yudaruddin
    • Resources
      Muh Shadiqul Fajri AF, Rizky Yudaruddin