The Impact of Digital Payment on Banking Stability
DOI:
https://doi.org/10.59188/eduvest.v4i9.30329Keywords:
Digital Payment, Banking Stability, Panel RegressionAbstract
Previous studies provides conclusions regarding the relationship between digital payments and banking stability in a particular country. Therefore, this research wants to see how the growth of digital payments impacts banking stability in 110 countries in the world from 2017 – 2022. This study explores the relationship between digital payments and banking stability using a panel data regression model. Digital payment transactions are proxied by the payment penetration ratio (PPR) while banking stability is proxied by the country's Z-score. This research found a negative correlation between digital payment transactions and banking stability in data from 110 countries. This is possible because of the risks arising from digital payment transactions. Overall, these findings support policies to increase secure payment transactions for banking stability.
References
Alkhowaiter, W. A. (2020). Digital payment and banking adoption research in Gulf countries: A systematic literature review. International Journal of Information Management, 53(February), 102102. https://doi.org/10.1016/j.ijinfomgt.2020.102102
Balakrishnan, V., & Shuib, N. L. M. (2021). Drivers and inhibitors for digital payment adoption using the Cashless Society Readiness-Adoption model in Malaysia. Technology in Society, 65(June 2020), 101554. https://doi.org/10.1016/j.techsoc.2021.101554
Bank Indonesia. (2019). Blueprint Sistem Pembayaran Indonesia 2025 - Menavigasi Sistem Pembayaran Nasional di Era Digital. Bank Indonesia, 1–81. https://www.bi.go.id/id/publikasi/kajian/Documents/Blueprint-Sistem-Pembayaran-Indonesia-2025.pdf
Bousrih, J. (2023). The impact of digitalization on the banking sector: Evidence from fintech countries. Asian Economic and Financial Review, 13(4), 269–278. https://doi.org/10.55493/5002.v13i4.4769
Broby, D. (2021). Financial technology and the future of banking. Financial Innovation, 7(1). https://doi.org/10.1186/s40854-021-00264-y
Brooks. (2008). No TitleМаркетинг по Котлеру.
Chiaramonte, L., Croci, E., & Poli, F. (2015). Should we trust the Z-score? Evidence from the European Banking Industry. Global Finance Journal, 28, 111–131. https://doi.org/10.1016/j.gfj.2015.02.002
COVIDEconomicCrisis1.pdf. (n.d.). https://www.researchgate.net/publication/342961959_Mitigating_the_COVID_Economic_Crisis_Act_Fast_and_Do_Whatever_It_Takes_A_VoxEUorg_Book?enrichId=rgreq-de5d52e41481f1651349d8b9591747b5-XXX&enrichSource=Y292ZXJQYWdlOzM0Mjk2MTk1OTtBUzo5MTM2NjY0NTkzMjg1MTNA
Ghassan, H. B., & Guendouz, A. A. (2019). Panel modeling of z-score: evidence from Islamic and conventional Saudi banks. International Journal of Islamic and Middle Eastern Finance and Management, 12(3), 448–468. https://doi.org/10.1108/IMEFM-04-2018-0122
Goldstein, I., Jiang, W., & Karolyi, G. A. (2019). To FinTech and beyond. Review of Financial Studies, 32(5), 1647–1661. https://doi.org/10.1093/rfs/hhz025
Goodhart, C. A. E., & Segoviano Basurto, M. A. (2009). Banking Stability Measures. IMF Working Papers, 09(4), 1. https://doi.org/10.5089/9781451871517.001
Humphrey, D., Willesson, M., Bergendahl, G., & Lindblom, T. (2006). Benefits from a changing payment technology in European banking. Journal of Banking and Finance, 30(6), 1631–1652. https://doi.org/10.1016/j.jbankfin.2005.09.009
Iswahyuni, I. (2021). Analisis Dampak Covid-19 Terhadap Perbankan Syariah. Widya Balina, 6(11), 43–60. https://doi.org/10.53958/wb.v6i11.74
Jegerson, D., & Hussain, M. (2022). A framework for measuring the adoption factors in digital mobile payments in the COVID-19 era. International Journal of Pervasive Computing and Communications. https://doi.org/10.1108/IJPCC-12-2021-0307
Kamal, R., & Souparnika. (2021). A Study On The Impact Of Digital Payment In Indian Economy With Special Reference To Covid-19. International Journal of Aquatic Science, 12(02), 894–902.
Kasri, R. A., Indrastomo, B. S., Hendranastiti, N. D., & Prasetyo, M. B. (2022). Digital payment and banking stability in emerging economy with dual banking system. Heliyon, 8(11), e11198. https://doi.org/10.1016/j.heliyon.2022.e11198
Koong, S. S., Law, S. H., & Ibrahim, M. H. (2017). Credit expansion and financial stability in Malaysia. Economic Modelling, 61(October 2015), 339–350. https://doi.org/10.1016/j.econmod.2016.10.013
Ma, C., Wu, J., Sun, H., Zhou, X., & Sun, X. (2023). Enhancing user experience in digital payments: A hybrid approach using SEM and neural networks. Finance Research Letters, 58(PB), 104376. https://doi.org/10.1016/j.frl.2023.104376
Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340. https://doi.org/10.1016/j.bir.2017.12.003
Panetta, I. C., Leo, S., & Delle Foglie, A. (2023). The development of digital payments – Past, present, and future – From the literature. Research in International Business and Finance, 64(December 2022), 101855. https://doi.org/10.1016/j.ribaf.2022.101855
Shaikh, I., & Anwar, M. (2023). Digital bank transactions and performance of the Indian banking sector. Applied Economics, 55(8), 839–852. https://doi.org/10.1080/00036846.2022.2094880
Son, J., Ryu, D., & Webb, R. I. (2023). Central bank digital currency: Payment choices and commercial bank profitability. International Review of Financial Analysis, 90(May), 102874. https://doi.org/10.1016/j.irfa.2023.102874
Sudarsono, H., Kholid, M. N., Trisanty, A., & Maisaroh, M. (2022). The intention of Muslim customers to adopt mobile banking: The case of Islamic banks in Indonesia. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2154102
Szumski, O. (2022). Comparative analyses of digital payment methods from the pre and post COVID-19 perspective. Procedia Computer Science, 207, 4660–4669. https://doi.org/10.1016/j.procs.2022.09.530
Zhang, Y., Zhang, G., Liu, L., De Renzis, T., & Schmiedel, H. (2019). Retail payments and the real economy. Journal of Financial Stability, 44, 100690. https://doi.org/10.1016/j.jfs.2019.100690
Zhu, J., Liu, Y., & Fang, Y. (2023). A blessing in disguise—The effect of China’s Covid-19 health code system on older people’s mobile payment usage. Finance Research Letters, 53(January), 1–8. https://doi.org/10.1016/j.frl.2023.103671
Published
Issue
Section
License
Copyright (c) 2024 Muthia Hanan Bachri, Irwan Adi Ekaputra
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
