ARCHIVES
VOL. 8, ISSUE 2 (2026)
Does mobile banking affect bank liquidity? Evidence from State-Owned Banks in Indonesia
Authors
Aulizza Abdul Fanni
Abstract
The link between mobile banking adoption and
bank liquidity is not well-defined, particularly in state-owned banks in
emerging markets. This study delves into the impact of mobile banking on the
loan-to-deposit ratio (LDR) of Indonesian state-owned banks, referred as BUMN
banks. It evaluates mobile banking intensity by analyzing registered users,
transaction volume, and transaction value to assess the scope of adoption,
transaction frequency, and financial depth. Utilizing a panel data regression
analysis, the study finds that only transaction value has a significant and
positive effect on LDR, while user adoption and transaction volume have
positive but not significant effects. This finding aligns with a
credit-facilitation mechanism, indicating the role of high-value digital
interactions. This is particular when supported by integrated loan products and
extensive financial activities on mobile platforms can enhance credit demand
and intermediation ratios. These results suggest that the effect of mobile banking
on liquidity is dependent on digital intensity, with the financial depth of
engagement being the key driver of liquidity dynamics in the BUMN banking
sector.
Download
Pages:30-36
How to cite this article:
Aulizza Abdul Fanni "Does mobile banking affect bank liquidity? Evidence from State-Owned Banks in Indonesia". International Journal of Management and Commerce, Vol 8, Issue 2, 2026, Pages 30-36
Download Author Certificate
Please enter the email address corresponding to this article submission to download your certificate.