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).

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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
Controls
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article

Nexus Between Fintech Innovations and Liquidity Risk in GCC Banks: The Moderating Role of Bank Size

Fadi Mohammed Alshannag, Laith Fouad Alshouha, Ohoud Khasawneh, Khalid Al Tanbour
4 citations
Journal of risk and financial management
Islamic Finance and Banking Studies
15.64
article

Nexus Between Fintech Innovations and Liquidity Risk in GCC Banks: The Moderating Role of Bank Size

Fadi Mohammed Alshannag, Laith Fouad Alshouha, Ohoud Khasawneh, Khalid Al Tanbour
article en
4 citations

Abstract

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).

Journal of risk and financial managementVol. 18(5)
University of Jordan (JO), Amman Arab University (JO), Jadara University (JO)
Openalex Percentile: Top 1%
Islamic Finance and Banking Studies
15.64
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