Islamic Banking and Global Financial Crises: A Review of Liquidity Risk Management

Islam Universalia: International Journal of Islamic Studies and Social Sciences

View Publication Info
 
 
Field Value
 
Title Islamic Banking and Global Financial Crises: A Review of Liquidity Risk Management
 
Creator AbdulGaniyy, AbdulFattah
AbdulKareem, Ibraheem Alani
 
Subject Islamic Banks
Liquidity Risk
Global Financial Crisis
 
Description The objective of this conceptual paper is to describe the resilience of Islamic banks during the 2008 and 2009 global financial meltdown. The growth of complex financial instruments which was aimed at spreading risk actually increased instability due to market fluctuations and speculative activities resulted to the Global Financial Crisis (GFC). Inadequate liquidity is the immediate cause of financial meltdown. The paper reviews the causes of liquidity risk in Islamic banks which is based on Shariah (Islamic Law) that prohibits charging of interest in business transactions. The study highlights the challenges of Islamic banks on liquidity in spite of its resilience during the crisis. Major causes of liquidity risk in Islamic banks were also discussed. The paper concludes with managerial and policy implications and the need to address the problem of managing liquidity risk in Islamic banks against possible future financial crisis.
DOI: https://doi.org/10.5281/zenodo.4033805
 
Publisher Cyber Dakwah
 
Date 2020-05-29
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://ejournal.cyberdakwah.com/index.php/Islam-Universalia/article/view/155
 
Source Islam Universalia ; Vol 2 No 1 (2020): Islam Universalia; 153 - 170
2684-8139
 
Language eng
 
Relation https://ejournal.cyberdakwah.com/index.php/Islam-Universalia/article/view/155/78
https://ejournal.cyberdakwah.com/index.php/Islam-Universalia/article/view/155/66
https://ejournal.cyberdakwah.com/index.php/Islam-Universalia/article/view/155/79
 
Rights Copyright (c) 2020 AbdulFattah AbdulGaniyy
https://creativecommons.org/licenses/by-sa/4.0/
 

Contact Us

The PKP Index is an initiative of the Public Knowledge Project.

For PKP Publishing Services please use the PKP|PS contact form.

For support with PKP software we encourage users to consult our wiki for documentation and search our support forums.

For any other correspondence feel free to contact us using the PKP contact form.

Find Us

Twitter

Copyright © 2015-2018 Simon Fraser University Library