Digital Innovations: Threat or Opportunity for Financial Stability in WAEMU countries ?
- IUP Journal of Financial Risk Management , 21 (4) : 47-55
Résumé
This paper examines the potential effects of digital innovations on the stability of the financial system in WAEMU countries over the period 2007 to 2022. Using annual data, the study applies fixed effects method, random effects estimation method, generalized least squares and panel corrected standard errors to assess the impact of digital innovations on the financial stability of WAEMU countries. The results indicate that digital innovations pose a threat to the stability of the financial system as they negatively influence financial stability. Inflation also has a negative impact on the stability of financial institutions. Migrant transfers, on the other hand, improve the stability of financial institutions. It calls for strengthening the regulatory framework to protect financial institutions.
Mots-clés
Digitals innovations, financial stability,WAEMU