IMPACT OF FINTECH & MONETARY POLICY ON LIQUIDITY CREATION: EVIDENCE FROM PAKISTAN’S BANKING SECTOR

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