Blockchain Technology and Systemic Risk

Authors

  • Aymen Mselmi University of Jeddah

Abstract

This paper examines the effect of financial institutions management information system migration to blockchain technology on systemic risk. Our study examines a sample of 40 financial institutions around the world. The aim is to identify to what extent the migration of financial company management information system to blockchain system contribute to minimize systemic risk measures through regressions on panel data. We have reached the empirical evidence which indicates that the change we mentioned earlier affect immediately the systemic risk level. Companies that have adopted the blockchain technology recorded a significant reduction in systemic risk level. In addition, financial institutions that have adopted this latter system recorded a significant decrease in long-run marginal expected shortfall and systemic risk index.

Keywords: Blockchain; Systemic Risk, Financial institutions

JEL Classifications: G21, G32

DOI: https://doi.org/10.32479/ijefi.9069

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Author Biography

Aymen Mselmi, University of Jeddah

PhD in financeAssistant professor of finance at the University of Jeddah, College of Business, al Kamil Branch, Finance and insurance department.Teacher of several subjects such as financial management, business valuation, financial decision and financial diagnosis.Authors of several scientific articles in the field of banking governance.

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Published

2020-03-01

How to Cite

Mselmi, A. (2020). Blockchain Technology and Systemic Risk. International Journal of Economics and Financial Issues, 10(2), 53–60. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/9069

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Articles