Abstract:
The study examines the i impact of FinTech and monetary policy
simple regression technique is
on liquidity creation. The
employed to test the hypotheses. The time
from the financial
formation is
series data is gathered
statements of the conventional banks in Pakistan from 2004-2023. The index
used for data collection of FinTech. The finding
significant impact on liquidity creation in Pakistan. It means that the higher FinTech
conventional banks results in the liquidity creation. The
s suggest that FinTech has a positive
among
more the banks uses FinTech, the
the banks create liquidity and boost
more
economic growth. The findings of the study align with the
financial intermediation theory. The State Bank of Pakistan
must effectively use the monetary
policy rate to control the amount of liquidity creation in the economy. The extremes of liquidity
creation, either the highest or lowest, harm the bank's performance and raise the risks for the banks
