By Yiping Huang, Xiang Li, Han Qiu, Changhua Yu
By comparing business loans made by a BigTech bank with those made by traditional banks, this study finds that BigTech loans tend to be smaller, and the BigTech lender is more likely to grant credit to new borrowers than traditional banks in response to an expansionary change in monetary policy. The BigTech bank’s advantages in information, monitoring, and risk management are the potential mechanisms.