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Liquidity Risk Management in Islamic Banks: Issues and Challenges

The purpose of this paper is to discuss the issues and challenges of liquidity risk management in Islamic banks. It also analyzes the meaning of liquidity risk, the sources of liquidity risk in Islamic banks and the common instruments used by Islamic banks to manage liquidity mismatches at both side...

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Main Authors: Bello, Nabil, Hasan, Aznan
Format: Conference or Workshop Item
Language:English
Published: 2016
Subjects:
BPH Islamic Economics
Online Access:http://irep.iium.edu.my/89890/1/89890_Liquidity%20Risk%20Management%20in%20Islamic%20Banks.pdf
http://irep.iium.edu.my/89890/
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spelling my.iium.irep.898902021-06-24T03:10:32Z http://irep.iium.edu.my/89890/ Liquidity Risk Management in Islamic Banks: Issues and Challenges Bello, Nabil Hasan, Aznan BPH Islamic Economics The purpose of this paper is to discuss the issues and challenges of liquidity risk management in Islamic banks. It also analyzes the meaning of liquidity risk, the sources of liquidity risk in Islamic banks and the common instruments used by Islamic banks to manage liquidity mismatches at both sides of their balance sheets. Secondary sources from existing literature was used to explain concepts and how they interrelate in the context of Islamic banks. The paper finds that Islamic liquidity management is an important building block for stable and efficient banking. Even though there are several attempts to find solutions to the incessant problems of liquidity faced by majority of Islamic banks, there are still several underlying problems in terms of deficiency in infrastructure especially in countries where Islamic finance is still infant, limitation of instruments and Shari’ah restrictions on some instruments. The study was limited to secondary sources without focusing on any location. Further case study in the areas where Islamic banking is suggested to further understand the dimensions of the problem. Regulatory bodies should come up with more innovative practices of Islamic liquidity management to solve unresolved theoretical issues and also meeting market requirements for liquidity. The paper presents the concept of liquidity risk management in the context of Islamic banking. 2016 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/89890/1/89890_Liquidity%20Risk%20Management%20in%20Islamic%20Banks.pdf Bello, Nabil and Hasan, Aznan (2016) Liquidity Risk Management in Islamic Banks: Issues and Challenges. In: 4th Asean International Conference on Islamic Finance (4th AICIF 2016), 6-8th December 2016, Equatorial Hotel, Melaka. (Unpublished)
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
topic BPH Islamic Economics
spellingShingle BPH Islamic Economics
Bello, Nabil
Hasan, Aznan
Liquidity Risk Management in Islamic Banks: Issues and Challenges
description The purpose of this paper is to discuss the issues and challenges of liquidity risk management in Islamic banks. It also analyzes the meaning of liquidity risk, the sources of liquidity risk in Islamic banks and the common instruments used by Islamic banks to manage liquidity mismatches at both sides of their balance sheets. Secondary sources from existing literature was used to explain concepts and how they interrelate in the context of Islamic banks. The paper finds that Islamic liquidity management is an important building block for stable and efficient banking. Even though there are several attempts to find solutions to the incessant problems of liquidity faced by majority of Islamic banks, there are still several underlying problems in terms of deficiency in infrastructure especially in countries where Islamic finance is still infant, limitation of instruments and Shari’ah restrictions on some instruments. The study was limited to secondary sources without focusing on any location. Further case study in the areas where Islamic banking is suggested to further understand the dimensions of the problem. Regulatory bodies should come up with more innovative practices of Islamic liquidity management to solve unresolved theoretical issues and also meeting market requirements for liquidity. The paper presents the concept of liquidity risk management in the context of Islamic banking.
format Conference or Workshop Item
author Bello, Nabil
Hasan, Aznan
author_facet Bello, Nabil
Hasan, Aznan
author_sort Bello, Nabil
title Liquidity Risk Management in Islamic Banks: Issues and Challenges
title_short Liquidity Risk Management in Islamic Banks: Issues and Challenges
title_full Liquidity Risk Management in Islamic Banks: Issues and Challenges
title_fullStr Liquidity Risk Management in Islamic Banks: Issues and Challenges
title_full_unstemmed Liquidity Risk Management in Islamic Banks: Issues and Challenges
title_sort liquidity risk management in islamic banks: issues and challenges
publishDate 2016
url http://irep.iium.edu.my/89890/1/89890_Liquidity%20Risk%20Management%20in%20Islamic%20Banks.pdf
http://irep.iium.edu.my/89890/
_version_ 1703960202596843520
score 13.211869

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