Examining the Impact of Fintech Lending and Capital Regulatory Requirements on Bank Stability: A Study of Developed and Developing Countries

Fin-tech plays a vital role in the modern age, it creates a revolution in the financial sector. Fin-tech provides the services the financial industry offers through its new technology, innovations, and unique platform to the population at their doorstep. After the financial crisis of 2008, the Basel Committee introduced Basel-III for the financial sector to ensure there was enough capital for the financial institutions to meet their daily needs and maintain the strongest position per the financial market's desire. The study aims to investigate whether or not fintech is a danger to bank stability. Is it dangerous for financial institutions to maintain their capital as Basel-III requires? This study conducts different statistical tests to overcome the exact situation and effects of fintech and bank capital requirements, blessings, or danger zones for financial institutions in the modern era. The statistical results reveal that financial institutions must adopt modern technology as fintech companies have provided in the contemporary era. Traditional banks are in a dangerous zone due to this healthy and tough competition in the form of fintech and Basel-III requirements, which are swords at the neck of financial institutions. The regulator and policymakers must take the necessary steps to make the desired regulation changes so that traditional banks can benefit from the new technology and keep themselves alive in the financial market.