LIQUIDITY RISK MANAGEMENT AND ITS IMPACT ON PERFORMANCE OF THE BANKS: A COMPARATIVE STUDY BETWEEN ISLAMIC AND CONVENTIONAL BANKS OF PAKISTAN, MALAYSIA AND INDONESIA

Usama Yaqoob () and Umair Khalid
Additional contact information
Usama Yaqoob: The University of Lahore, Lahore, Pakistan
Umair Khalid: The University of Lahore, Lahore, Pakistan

Journal of Internet Banking and Commerce, 2018, vol. 23, issue 03, 01-27

Abstract: Liquidity risk Management is fundamental to sound banking practice. No doubt today all banking institutions face countless risks such as liquidity risk which can cause failure of a banking system. Therefore, a proper risk management technique is necessary for the existence and the growth of banks. Therefore, the purpose of this study is to examine the effectiveness of risk management practice that is liquidity risk their impact on performance or Profitability of Islamic and conventional banks. Liquidity risk is measured by loan to deposit ratio, cash to total asset ratio. Performance measure proxies were ROE and ROA for both Islamic and Conventional banks. Data are panel from 2011-2015 which is taken from the financial reports of Islamic and conventional banks. Regression analysis has been used to extract the results. The result of this study concluded that how this liquidity risk will affect the bank performance in conventional and Islamic banks.

Keywords: ROA; ROE; Liquidity; Cash to Total Asset Ratio; Loan to Deposit Ratio; Islamic Banking; Conventional Banking; Pakistan; Malaysia; Indonesia (search for similar items in EconPapers)
JEL-codes: A11 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.icommercecentral.com/open-access/liqui ... nks-of.php?aid=87294 Full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:joibac:0077

Access Statistics for this article

Journal of Internet Banking and Commerce is currently edited by Vijaya Lakshmi, Nahum Goldmann and Dale Pinto

More articles in Journal of Internet Banking and Commerce
Bibliographic data for series maintained by Dale Pinto ().