Nexus between Liquidity Risk and Islamic Banking Performance
Abstract
The study aims to assess liquidity risk of Islamic banking sector with Islamic banks performance working under Sharia jurisdictions. To deduct this six Islamic banks are selected of Pakistan by deploying regression analysis on panel data. Simple random sampling is used to select these banks to assess liquidity risk management tools of study. For performance profitability index is used generated by ROA, ROE and EPS. Thus the results inferred that liquidity risk proponents have significant role on bank performance and there is dire need to focus risk management compliance practices and regulations by these banks to reduce banks financial disparity. The value of study is in itself that has less focused in previous studies revealing its originality.
