Liquidity Risk Management: A Comparative Study Between Islamic And Conventional Banks

Cite this:
Ghenimi, A., & Brahim Omri, M. A. (2015). Liquidity Risk Management: A Comparative Study Between Islamic And Conventional Banks. Journal of Business Management and Economics, 3(6), 25–30. https://doi.org/10.15520/jbme.2015.vol3.iss6.107.pp25-30
© 2022 Interactive Protocols
RIGHTS & PERMISSIONS
Article Views
227
Altmetric
1
Citations
-
LEARN ABOUT THESE METRICS
   PDF  

Abstract

This paper examines the factors that affect the liquidity risk for Islamic and conventional banks in the Golf countries, using the panel data for 11 IBs and 33 CBs between 2006 and 2013. Our results show that return on equity,   Net Interest Margin, Capital Adequacy Ratio and inflation rate have a positive impact on liquidity risk for Islamic banks, while returns on assets, Non Performing Loan, size and GDP growth have a negative impact.  On the other hand, in conventional banks, size, Return on Equity, Net Interest Margin, Capital Adequacy Ratio, GDP growth and inflation rate have a positive impact, whereas the Return on Assets, Non Performing Loan have a negative impact on liquidity risk.  This study tries to see how Islamic and conventional banks manage their liquidity in response to changes on the basis of several factors.

KEYWORDS:

 Special Issue

Article Metrics Graph

Chart Graph | Range Graph

Content

Section

Source