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Corporate social responsibility (CSR) and fintech have emerged as critical megatrends in the banking industry. This study aims to examine the impact of financial technology on the relationship between CSR and banks' financial stability. Specifically, it investigates the moderating effect of fintech on the association between CSR and the financial stability of conventional banks operating in Qatar, UAE, Saudi Arabia, Kuwait, Bahrain, Jordan, Pakistan and Turkey from 2010 to 2021.

To achieve the authors’ objective, the authors apply Baron and Kenny's three-link model, tested with fixed and random effects regression models.

The results reveal that the development of fintech decreases banks' financial stability, whereas it promotes banks' involvement in CSR strategies. Furthermore, the findings indicate that fintech plays a moderating role in the relationship between CSR and financial stability. It positively moderates the impact of CSR on financial stability. The robustness analysis highlights the mutual reinforcement of fintech and CSR dimensions in improving the financial stability of banks. Thus, by fostering community and product responsibility, fintech could enhance the financial stability of banks.

Finally, the authors recommend that banks focus more on developing technological and environmentally friendly financial products.

This study contributes significantly by providing valuable insights for managers and policymakers seeking to improve banks' financial stability through the simultaneous adoption of new financial technology products and the strong commitment to CSR practices.

The purpose of this paper is to conduct a behavioral analysis, through overconfidence, in order to understand how this cognitive bias could affect risk taking and inefficiency in Islamic and conventional banks operating in the MENA region.

To achieve the objective, the authors considered two overconfidence proxies, namely loan growth rate and net interest margin. Using the generalized method of moments method regressions for panel data, the authors found that the two overconfidence proxies have an effect on the risk exposure and consequently on the efficiency level of Islamic and conventional banks.

In general, overconfidence bias causes excessive risk taking and the degradation of the cost efficiency level. Moreover, these effects emerge with a delay of three to four years and have implications that are not too different for both types of banks.

The main motivation underlying this research study is the relatively new field of behavioral finance way in treating the topic of overconfidence. The particularity of the overconfidence bias topic is its assumption that financial decisions can be influenced by cognitive biases, ignoring the fact of a predetermined risk-return calculation.