Academy of Strategic Management Journal Volume 20, Special Issue 2, 2021 Strategic Management & Decision Process 1 1544-1458-20-S2-70 THE EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ON BANK LIQUIDITY RISK Sarmila Udin, Universiti Teknologi MARA Imbarine Bujang, Universiti Teknologi MARA Nancy Chiuh Noemi, Universiti Teknologi MARA Jamaliah Said, Universiti Teknologi MARA ABSTRACT Bank stability in a financial system is vital to hold adequate liquidity in preventing liquidity risk. Financial Institutions play an essential role as an intermediary to ensure efficient banking systems as the leverage force for development. They had undergone a significant transformation due to external factors such as the changes in the economic environment and the adoption of advanced technology. To enhance the level of the bank liquidity, participation from the public is needed through ICT. This paper aims to determine the effect of macroeconomic and ICT on bank liquidity risk in Asia and the Pacific region based on the level of income economies. The countries were selected based on data availability; therefore, the sample consisted of 24 countries in Asia and the Pacific region. The period of study was from 2011 to 2017. The static panel data was employed to test the hypothesis of the study and was run using Stata 15. The Hausman Specification test and Pooled OLS were used to test the result. This study found that ATM was a positive and significant transaction method. Mixed results were found in fixed broadband and mobile cellular. As for Internet security, it was found that it was an essential factor that will affect bank liquidity risk due to the lack of confidence in doing bank transaction. Keywords: Banking Environment, Finance Technology, Information Technology (ICT), Financial Innovations, Macro Economic INTRODUCTION The current banking environment has become highly competitive today. In order to thrive and survive, banks can use the latest technology to help them improve their operations and make their services more flexible so that they can adapt rapidly to the complexities of a fast-changing business scenario. It occurs when technology has devastating effects and the banking sector is reshaped. Information technology in the industry is developing rapidly around the world. Under finance technology, the Basel Committee on Banking Supervision (BCBN) understands that financial innovations generated by technology can lead to more efficient financial services (Kolesova & Girzheva, 2018). Over the decades, the financial services industry has undergone significant transformations due to internal and external factors, including adopting advanced technologies, changing regulatory environments, etc. In the complex environment of the financial services industry, there is a need to broaden the range of risks to adapt to consumer behavior changes to continue to operate. In this era of Industrial Revolution 4.0 (IR 4.0), the use of technology and its inventions create opportunities for banks to improve banks' quality. With the abundance of technology, banks can improve their liquidity risk. It could help to improve the level of liquidity through