IT adoption and bank performance during the Covid-19 pandemic

This paper examines the impact of pre-2020 information technology (IT) adoption on bank performance during the initial stages of the Covid-19 pandemic. We show that high IT adopters performed better in terms of market returns, Tobin’s q and lending. Our findings also suggest that higher pre-crisis I...

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Detalles Bibliográficos
Autores principales: Dadoukis, Aristeidis, Fiaschetti, Maurizio, Fusi, Giulia
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier B.V. 2021
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9755521/
https://www.ncbi.nlm.nih.gov/pubmed/36540550
http://dx.doi.org/10.1016/j.econlet.2021.109904
Descripción
Sumario:This paper examines the impact of pre-2020 information technology (IT) adoption on bank performance during the initial stages of the Covid-19 pandemic. We show that high IT adopters performed better in terms of market returns, Tobin’s q and lending. Our findings also suggest that higher pre-crisis IT investments are associated with more loans issued under the US Paycheck Protection Program, and lower rates of loan modifications due to Covid-19. This study corroborates other recent findings that technology adoption fosters banks’ resilience during crises, ultimately enhancing financial stability.

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