Blockchain and Bank Lending Behavior: A Theoretical Analysis

The application of blockchain technology in the financial industry has become the focus of global attention; thus, the traditional credit business of commercial banks faces unprecedented opportunities and challenges. Based on the theoretical analysis, this study systematically examines the dynamic impact of blockchain on the lending behavior of commercial banks. The results indicate that, in the case of interest rate marketization, the blockchain expands bank credit through the mechanism of “reducing management costs”; in the case that interest rates have not yet been marketized, the blockchain can also increase bank lending through the channel of “correcting the price of funds” by narrowing the difference between the market equilibrium and the bank deposit interest rate. The results are of great significance for a deeper understanding of the impact and mechanism of blockchain on bank credit. JEL codes: G21; O31; O33