We build a model with a traditional banking system, endogenous entry of firms and fintech intermediaries, and firm heterogeneity in credit access and usage to study the credit-market, macroeconomic, and business cycle implications of the recent sizable growth in the number of fintech...

Emerging economies (EMEs) exhibit high regulatory barriers to firm entry, where the latter are associated with reduced access to formal credit markets. Reforms that reduce firm-creation costs have therefore become a key policy priority. At the same time, access to domestic credit markets can...

We build a model with a traditional banking system, endogenous entry of firms and fintech intermediaries, and firm heterogeneity in credit access and usage to study the credit-market, macroeconomic, and business cycle implications of the recent sizable growth in the number of fintech...

Financial inclusion is strikingly low in emerging economies. In only a few years, financial technologies (fintech) have led to a dramatic expansion in the number of non-traditional credit intermediaries, but the macroeconomic and credit-market implications of this rapid growth of fintech are not...

Reforms aimed at reducing the regulatory barriers to firm entry and bolstering greater firm creation have gained significant prominence in economies beyond the U.S. Given these facts and amid growing work on the link between firm creation and cyclical housing-market dynamics, we document a...

Emerging economies (EMEs) exhibit high regulatory barriers to firm entry, where the latter are associated with reduced access to formal credit markets. Reforms that reduce firm-creation costs have therefore become a key policy priority. At the same time, access to domestic credit markets can...