Author(s): Sarmila Udin, Imbarine Bujang, Nancy Chiuh Noemi, Nancy Chiuh Noemi,
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.