Open Access Journal Article

The Impact of Economic Policy Uncertainty on Systemic Risk in the Fintech Industry: Evidence from Crisis Events and the COVID-19 Pandemic

by Aktham Maghyereh a,*  and  Jinxin Cui b, c
a
Department of Economics and Finance, United Arab Emirates University, United Arab Emirates
b
School of Statistics and Mathematics, Zhejiang Gongshang University, Hangzhou, China
c
Collaborative Innovation Center of Statistical Data Engineering Technology & Application, Zhejiang Gongshang University, Hangzhou, China
*
Author to whom correspondence should be addressed.
FEL  2024, 23; 3(1), 23; https://doi.org/10.58567/fel03010003
Received: 11 December 2023 / Accepted: 20 December 2023 / Published Online: 16 January 2024
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Abstract

This paper investigates the effect of economic policy uncertainty (EPU) on the systemic risk of the fintech industry. To achieve this goal, we first estimate the evolution of system-wide systemic risk using the CatFin method. We further examine whether EPU significantly affects systemic risk. Our findings demonstrate that the systemic risk of the fintech industry is time-variant and sensitive to major crisis events. Systemic risk tends to increase after major crises, especially the outbreak of the COVID-19 pandemic. EPU has a considerable impact on systemic risk, notably during periods of turmoil.

Keywords: Fintech industry; Systemic risk; CatFin; Economic policy uncertainty; COVID-19;
Copyright: © 2024 by Maghyereh and Cui. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Maghyereh, A.; Cui, J. The Impact of Economic Policy Uncertainty on Systemic Risk in the Fintech Industry: Evidence from Crisis Events and the COVID-19 Pandemic. Financial Economics Letters, 2024, 3, 23. https://doi.org/10.58567/fel03010003
AMA Style
Maghyereh A, Cui J. The Impact of Economic Policy Uncertainty on Systemic Risk in the Fintech Industry: Evidence from Crisis Events and the COVID-19 Pandemic. Financial Economics Letters; 2024, 3(1):23. https://doi.org/10.58567/fel03010003
Chicago/Turabian Style
Maghyereh, Aktham; Cui, Jinxin 2024. "The Impact of Economic Policy Uncertainty on Systemic Risk in the Fintech Industry: Evidence from Crisis Events and the COVID-19 Pandemic" Financial Economics Letters 3, no.1:23. https://doi.org/10.58567/fel03010003
APA style
Maghyereh, A., & Cui, J. (2024). The Impact of Economic Policy Uncertainty on Systemic Risk in the Fintech Industry: Evidence from Crisis Events and the COVID-19 Pandemic. Financial Economics Letters, 3(1), 23. https://doi.org/10.58567/fel03010003

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