Stress Testing Banks’ Digital Capabilities: Evidence from the COVID-19 Pandemic
Journal
Journal of Financial and Quantitative Analysis
ISSN
0022-1090
Type
journal article
Date Issued
2023-09-25
Author(s)
Abstract (De)
Banks’ IT capabilities affect their ability to serve customers during the COVID-19 pandemic, which generates an unexpected and unprecedented shock that shifts banking services from in-person to digital. Amid mobility restrictions, banks with better IT experience larger reductions in physical branch visits and larger increases in website traffic, implying a larger shift to digital banking. Stronger-IT banks are able to originate more PPP loans to small business borrowers, especially in areas with more severe COVID-19 outbreaks, higher internet use, and higher bank competition. Those banks also attract more deposit flows and receive better mobile customer reviews during the pandemic.
Language
English
Refereed
Yes
Publisher
Cambridge University Press
Division(s)
Eprints ID
269737