Journal of Islamic Economic and Business Research
Vol. 1 No. 1: June 2021

Does Financing Structure Relates to Liquidity Risk? A Comparative Study of Islamic and Conventional Banks of Pakistan

Hassnian Ali (Minhaj University Lahore, Pakistan)
Hussain Mohi-ud-Din Qadri (Unknown)
Atta Ul Mustafa (Minhaj University Lahore, Pakistan)



Article Info

Publish Date
21 Jun 2021

Abstract

The purpose of this paper is to find out whether financing in specific sectors increase bank liquidity risk and how this goes on with both Islamic and conventional banks. The paper used pooled regression, fixed effect model and random effect model decided on the basis of dummy joint significant test. The result shows that only financing concentration (SPEC) proved to have significant association with Islamic and overall banking sector for short run. And all other banks specific variables are unable to show a significant result. While the macroeconomic variable GDP and Inflation have a strong relationship in both long run and short run time period. This paper add value to the existing literature on liquidity risk under the new indicators issued by Basel III.

Copyrights © 2021






Journal Info

Abbrev

jiebr

Publisher

Subject

Religion Economics, Econometrics & Finance

Description

Journal of Islamic Economic and Business and Research is a scientific journal which has specialization of research in Islamic Economic and Business Research. Islamic Economic and Business Research is strategic issues in the world because its role and benefit to societies. Therefore, this issue need ...