A Comparative Research between Conventional and Islamic Bank System of Pakistan: Liquidity Risk Management

  • Dr Fazal Ali Shaikh
  • Nasrullah Odhano
Keywords: Comparative Study, Liquidity Risk Management, Capital Adequacy Return on Assets.

Abstract

The function of the bank is differentiated into budgetary middle people, facilitator and supporters. Hence, the banks keep themselves as confided body to their trade and business partners. Assets hazard could emerge and to be seen out of such diverse tasks since they are entirely on stake in terms of accessibility. When assets are set out by the non-members supplementary actions are necessary to be taken by the Islamic banks in order to balance assets and liquidity with sharia standards. The purpose of this exploration is to find the liquidity risk associated to the dissolvability of finance based foundation in order to evaluate assets risk management via parallel evaluation between Islamic and other Pakistani banks. This paper inspects the significance of the magnitude of the bank, networking capital margin on equity, finical sufficiency plus return on Resources and Assets (RoA), along assets stake organization in conventional plus Islamic banks of the Pakistan. The investigation relays on auxiliary knowledge that is over the period of four years. For instance, during 2017-2018, the investigation explored positive, hence, less significant relationship of magnitude of the firm plus networking cash surge to net assets along with liquidity vulnerability in similar models. Moreover, financial competence share in other banks plus margin of assets in Islamic banks is found encouraging and prominent at ten percent 10% gradation equivalent.

Published
2020-04-15
Section
Articles