The impact of CBDC adoption on bank liquidity risk: evidence from the global banking sector

This article examines whether and how the adoption of CBDC influences bank liquidity risk. Using a sample of 804 listed commercial banks from 47 countries during the 2010-2021 period, we find that further stages of CBDC adoption subject banks to greater liquidity risk as indicated by higher bank fin...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Applied economics letters Jg. 32; H. 2; S. 193 - 198
Hauptverfasser: Nguyen, Dinh Trung, Nguyen, Minh Ngoc, Duong, Kim Thanh
Format: Journal Article
Sprache:Englisch
Veröffentlicht: London Routledge 19.01.2025
Taylor & Francis LLC
Schlagworte:
Bank liquidity
bank liquidity risk
Banking
banking sector
CBDC
Commercial banks
Currency
International banking
Liquidity
liquidity creation
Risk
Risk factors
Robustness
ISSN:1350-4851, 1466-4291
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:This article examines whether and how the adoption of CBDC influences bank liquidity risk. Using a sample of 804 listed commercial banks from 47 countries during the 2010-2021 period, we find that further stages of CBDC adoption subject banks to greater liquidity risk as indicated by higher bank financing gap ratio. The result still holds through a series of robustness checks, including when we employ bank liquidity creation measure to more comprehensively capture the level of bank liquidity, or when we use two-step system GMM to mitigate endogeneity concern. Further analyses show that this adverse impact of CBDC adoption on bank liquidity is driven by the reduction in banks' core deposits. Our results provide important policy implications for countries considering to implement a CBDC project.
Bibliographie:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 14
ISSN:1350-4851
1466-4291
DOI:10.1080/13504851.2023.2259595