Better IT protected banks during financial crisis – IMF paper

NPLs were 10% lower in banks with stronger IT infrastructure, research shows

Photo of old computers

Banks that are “tech-orientated” are more likely to weather a financial crisis, according to novel research from the International Monetary Fund.

Using a dataset that examined the hardware used by commercial banks before the 2008 financial crisis, Nicola Pierri and Yannick Timmer concluded “technology adoption in lending” increases financial stability.

“Banks led by more ‘tech-oriented’ managers adopted IT more intensively and experienced lower non-performing loans [NPLs] during the crisis,”

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

How advanced AI threatens banking security systems

The future of payments promises to transform the fintech world as traditional friction barriers begin to disappear. Amid this innovation, concerns arise: could the advent of AI technology give rise to novel forms of fraud that overshadow improvements to…

Central Banking FinTech & RegTech Global Awards 2021

In March 2021, Central Banking launched its fourth annual FinTech & RegTech Global Awards to showcase some of the groundbreaking projects undertaken in the community. The results are revealed in the awards articles published in this special winners’…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.