Nexus Between Fintech Innovations and Liquidity Risk in GCC Banks: The Moderating Role of Bank Size
Fintech is a modern phenomenon that is transforming the banking industry through innovations that streamline financial processes and improve efficiency. The increasing adoption of disruptive technologies prompts inquiries regarding their potential to either bolster banks’ stability or expose them to various challenges and risks, including liquidity issues. Hence, this paper analyzes the effect of fintech innovations on liquidity risks in commercial banks across the six GCC countries (comprising a major financial market) during the period from 2018 to 2023. To develop a panel data methodology, we chose a sample of 26 commercial banks. The findings from our analysis indicated that (1) fintech innovations have a negative relationship with liquidity risks and (2) the size of the bank moderates the connection between fintech and liquidity risks (whereby larger banks significantly affect the relationship between fintech innovations and liquidity risks).
Authors
- Fadi Mohammed Alshannag (ORCID: https://orcid.org/0009-0008-1323-6836)
- Laith Fouad Alshouha (ORCID: https://orcid.org/0000-0002-4384-2086)
- Ohoud Khasawneh (ORCID: https://orcid.org/0000-0001-7374-8579)
- Khalid Al Tanbour
Institutions
- University of Jordan (JO)
- Amman Arab University (JO)
- Jadara University (JO)
Publication Details
- Journal
- Journal of risk and financial management
- Published
- 2025-04-24
- DOI
- https://doi.org/10.3390/jrfm18050226
- Citations
- 4
- Primary Topic
- Islamic Finance and Banking Studies
- Type
- article
- Field-Weighted Citation Impact
- 15.64