Fintech Regulation and Too-Big-To-Fail Perception : Evidence from the Registration Requirements on Chinese Peer-to-Peer Platforms

Using the event of uniformly implementing registration requirements in Chinese peer-to-peer (P2P) industry, this paper evaluates the impact of fintech regulations and pays particular attention to the moderating effect of the too-big-to-fail (TBTF) perception. The results show that, even though the registration requirements have helped to clean up problem platforms and lower loan yield, the requirements have, in general led to significant outflows of investors and borrowers from P2P platforms. However, the TBTF perception has offset most of the impact of the registration requirements, and more interestingly, none of the other certification channels documented by literature can provide similar functions