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Blockchain Technology and Banking Performance

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

The blockchain technology has recently changed the firms’ operations and performance. Therefore, this paper tries to examine the influence of the level of adoption of blockchain on the financial and sustainability performance in the banking sector. The study collects the data from the reports of 15 UAE commercial banks from 2017 to 2023, and fixed effect regression is applied to test three hypotheses. The study finds a nonsignificant impact of BC adoption on banking financial performance. However, environmental performance significantly impacts BC adoption levels, and a substantial role of investment in BC in mediating the association between BC adoption and banking performance. The small sample size and the classification difficulty of the adoption levels are the main limitations of the study. The study has many implications that can be summarized as: Societal impact: The BC enhances financial inclusion and may eliminate or create market jobs. Managerial impact: The BC technology enhances decentralization and helps managers think strategically. Economic impact: It provides affordable financial services for financial institutions, improving banking efficiency and enhancing investment in technology.

Original languageEnglish
Title of host publicationStudies in Systems, Decision and Control
PublisherSpringer Science and Business Media Deutschland GmbH
Pages207-223
Number of pages17
DOIs
StatePublished - 2026

Publication series

NameStudies in Systems, Decision and Control
Volume659
ISSN (Print)2198-4182
ISSN (Electronic)2198-4190

Keywords

  • Banking financial performance
  • Blockchain adoption
  • ESG performance score
  • Investment in blockchain
  • Tobin’s Q

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