A Study on Commercial Bank Liquidity Risk in the Context of Digital Currency Disruption
DOI:
https://doi.org/10.54097/p7ep6309Keywords:
Digital currency, Liquidity risk, Deposit migration, Commercial banks, Intermediation effectAbstract
Against the backdrop of the accelerated advancement of digital currencies and their ongoing reshaping of the financial system, commercial banks’ liquidity risks are exhibiting new patterns of evolution. Focusing on the mechanism through which digital currency shocks affect bank liquidity risks, this study constructs an analytical framework that incorporates deposit migration pathways. Using panel data from commercial banks, we conduct empirical tests employing two-way fixed-effects models and mediation models. The results indicate that digital currencies significantly weaken deposit stability and elevate liquidity risk levels, with deposit migration playing a partial mediating role in the transmission of shocks. Additionally, banks of different sizes exhibit varying sensitivities to these shocks, with small and medium-sized banks being more significantly affected. Further analysis reveals that capital adequacy ratios have a certain mitigating effect on risk but cannot fully offset structural shocks. This study uncovers the intrinsic evolutionary logic of commercial bank liquidity risk in the context of digital currencies from the perspectives of mechanism identification and quantitative testing.
Downloads
References
[1] Akhamere G D. The impact of Central Bank Digital Currencies (CBDCs) on commercial bank credit creation and financial stability[J]. framework (ILORI, 2022, Ilori et al., 2022b), 2023, 29: 31.
[2] Okaro H E. Evaluating the long-term macroeconomic implications of central bank digital currencies on global financial intermediation and sovereign monetary autonomy[J]. Journal Homepage: Yvww. Ijrpr. Com ISSN, 2025, 2582: 7421. DOI: https://doi.org/10.55248/gengpi.6.0225.0728
[3] Jailani N, Anwar K, Maulida M, et al. Central Bank Digital Currencies and Their Potential Impact on the Profitability and System Stability of Commercial Banking in Emerging Markets [J]. EkBis: Jurnal Ekonomi dan Bisnis, 9(1): 37-51. DOI: https://doi.org/10.14421/EkBis.2025.9.1.2425
[4] Riabushka L B, Fedan A, Zhuravka O S. Assessing the Impact of Currency Risk on the Banking Ecosystem in Ukraine[J]. 2025. DOI: https://doi.org/10.21272/esbp.2025.2-03
[5] Hussain H S M A. THE IMPACT OF DIGITAL FINANCIAL DEVELOPMENT ON COMMERCIAL BANK STABILITY [J]. Contemporary Journal of Social Science Review, 2025, 3(4): 58-75.
[6] Anggraeni E, Ermawati L. Effect of Financing Risk and Liquidity Risk on Financial Performance in Islamic Commercial Banks in Indonesia[J]. Mutanaqishah: Journal of Islamic Banking, 2026, 6(1): 1-14.
[7] Abdul-Wahab A H, Yakubu I N, Iddrisu A. The Role of Central Bank Digital Currencies in Promoting Financial Stability and Inclusion[M]//Financial Regulation, Governance, and Stability. Routledge, 2025: 143-161. DOI: https://doi.org/10.4324/9781003615194-8
[8] Alshouha L, Khasawneh O, Alshannag F, et al. Nexus between fintech innovations and liquidity risk in GCC banks: the moderating role of bank size[J]. Journal of Risk and Financial Management, 2025, 18(5): 226. DOI: https://doi.org/10.3390/jrfm18050226
[9] Prates M M. Money in the twenty-first century: From rusty coins to digital currencies[J]. Ohio State Business Law Journal, 2021, 15: 164. DOI: https://doi.org/10.2139/ssrn.3781269
[10] Laurent A. Central Bank Digital Currencies and Financial Stability [M] // Financial Stability, Risks, and Ecological Transition. Routledge, 2025: 19–27. DOI: https://doi.org/10.4324/9781003663539-3
[11] Ngo H K, Trinh H T T. The impact of financial risks on bank performance: evidence from Bayesian analysis in Vietnam's commercial banks[J]. Discover Sustainability, 2025, 6(1): 515. DOI: https://doi.org/10.1007/s43621-025-01246-1
[12] Asghar N, Sabri H B A, Saleem S. The implications of central bank digital currencies (CBDCs) on monetary policy: Evidence from Pakistan[J]. Journal of Social Signs Review, 2025, 3(4): 38-51.
[13] Yen D T H, Trang P L T, Huong N T, et al. The effect of credit risk on the financial performance of commercial banks in Vietnam[J]. Vietnam Journal of Agricultural Sciences, 2024, 7(2): 2160-2172. DOI: https://doi.org/10.31817/vjas.2024.7.2.06
[14] Haouari A, Haouari A. Digital Currencies and the Future of Monetary Policy: Risks and Opportunities[J]. Economic Studies, 2025, 19(3): 117-147.
[15] Yunita P. The digital banking profitability challenges: are they different between conventional and Islamic banks? [J]. Jurnal Akuntansi dan Keuangan Indonesia, 2021, 18(1): 4. DOI: https://doi.org/10.21002/jaki.2021.04
Downloads
Published
Issue
Section
License
Copyright (c) 2026 International Journal of World Economic Research
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
