Corporate governance, Board of directors, Outside director, Remuneration policy, G3, G2, J44,

Enforcement actions (sanctions) aim to penalize guilty companies and provide examples to other companies that bad behavior will be penalized. A handful of papers analyze the consequences of sanctions in banking for sanctioned companies, while no papers have investigated the spillover effects on non-sanctioned banks. Focusing on credit-related sanctions, we show the existence of a spillover effect: non-sanctioned banks behave similar to sanctioned banks, depending on their degree of similarity, offloading problematic loans and reducing their lending activity. JEL Classification: G20; G21; G32

PurposeIn recent years, the penetration of digital technologies in the financial industry determined the arising of Fintech, which generated a dynamic and rapid change that business operators and supervisory authorities in the banking industry are struggling to follow it. This is especially due to issues affecting financial intermediaries and customers, and potential risks of stability of the financial system. The aim of this paper is to provide a review of Fintech in the banking industry thus to update the knowledge about technology innovation in the banking sector, identify the major trends in the domain and delineate future research directions.Design/methodology/approachThe study reviews 377 articles indexed on Scopus from 2014 to 2021 that focus on Fintech and the banking industry. The methodology adopted is structured in two steps: the keywords selection and the analysis of the documents extracted. The first step identified “Fintech” and “bank” as keywords to be searched within the title, abstract or keywords of documents indexed on Scopus; whereas the second step combined R and VOSviewer to provide a descriptive analysis of the dataset and the analysis of keywords and occurrences, respectively.FindingsResults achieved in the study allow providing a systemic view of the Fintech in the banking industry, including the emergent phenomenon of digital banking. In particular, it is provided with a general overview and descriptive information on the entire sample of documents analyzed, their authors, the keywords used and the most cited works. Besides, a deepening on the model of digital banking is provided, by delineating the six dimensions of the key effects generated by the digital bank model.Originality/valueTwo main elements of originality characterize this study. The first one is related to the fact that few review studies have been published on Fintech in the banking industry, and the second one concerns the multiple dimensions of the impact of Fintech in the banking sector, which includes customer, company, bank, regulation authority and society.

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Research Question/Issue Do enforcement actions impact banks' board composition? Based on a unique sample of sanctions imposed on Italian banks by the country's banking supervisory authority from 2009 to 2015, we investigate whether supervisory enforcement actions affect changes at the board level. Moreover, we examine whether changes at the board level after a sanction are effective in reducing the probability of further sanctions in the future. Research Findings/Insights The findings reveal that sanctioned banks change their board composition following a supervisory sanction. We further test whether these changes improve bank governance and find that, under certain conditions, they may reduce the probability that the board is sanctioned again. Robustness tests confirm the results. Theoretical/Academic Implications This study provides empirical evidence that supports the role of supervisory enforcement actions in inducing banks to adopt changes at the board level. Given that the relationship between supervisory sanctions and changes in board characteristics is still neglected, we contend that our results may increase the understanding of the effectiveness of enforcement actions in improving board characteristics. Practitioner/Policy Implications We believe that our results have policy implications by making a clear and concrete contribution to the ongoing debate on the revision of the principles for enhancing corporate governance and banking supervision.