Liquidity risk management and financial performance in Malaysia: empirical evidence from Islamic banks

Liquidity risk arises from maturity mismatches where liabilities have a shorter tenor than assets. A sudden rise in the borrowers‟ demands above the expected level can lead to shortages of cash or liquid marketable assets (Oldfield and Santamero, 1997). This paper aims to analyse the liquidity...

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Main Author: Mohd Ariffin, Noraini
Format: Article
Language:English
Published: PPs Unsyiah 2012
Subjects:
Online Access:http://irep.iium.edu.my/28987/
http://irep.iium.edu.my/28987/
http://irep.iium.edu.my/28987/1/5-Liquidity-Risk-and-Performance.doc-final.pdf
id iium-28987
recordtype eprints
spelling iium-289872013-03-18T07:09:50Z http://irep.iium.edu.my/28987/ Liquidity risk management and financial performance in Malaysia: empirical evidence from Islamic banks Mohd Ariffin, Noraini HG178 Liquidity Liquidity risk arises from maturity mismatches where liabilities have a shorter tenor than assets. A sudden rise in the borrowers‟ demands above the expected level can lead to shortages of cash or liquid marketable assets (Oldfield and Santamero, 1997). This paper aims to analyse the liquidity risks and disclosure as well as to draw the relationship between liquidity risks and financial performance measures using return on assets (ROA) and return of equity (ROE) of the Islamic banks. Based on selected Islamic banks in Malaysia over the period from 2006 to 2008, the study also attempts to determine the impact of the global financial crisis on the Islamic banks‟ liquidity risks and financial performance. Findings of the study contribute towards enriching the literature on the risk management of the Islamic banks by providing deeper understanding on issues relating to liquidity risk management by the Islamic banks. PPs Unsyiah 2012-08 Article PeerReviewed application/pdf en http://irep.iium.edu.my/28987/1/5-Liquidity-Risk-and-Performance.doc-final.pdf Mohd Ariffin, Noraini (2012) Liquidity risk management and financial performance in Malaysia: empirical evidence from Islamic banks. Aceh International Journal of Social Sciences, 1 (2). pp. 68-75. ISSN 2088-9976 http://aijss.pps.unsyiah.ac.id/2012/07/volume-1-number-2-august-2012/
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG178 Liquidity
spellingShingle HG178 Liquidity
Mohd Ariffin, Noraini
Liquidity risk management and financial performance in Malaysia: empirical evidence from Islamic banks
description Liquidity risk arises from maturity mismatches where liabilities have a shorter tenor than assets. A sudden rise in the borrowers‟ demands above the expected level can lead to shortages of cash or liquid marketable assets (Oldfield and Santamero, 1997). This paper aims to analyse the liquidity risks and disclosure as well as to draw the relationship between liquidity risks and financial performance measures using return on assets (ROA) and return of equity (ROE) of the Islamic banks. Based on selected Islamic banks in Malaysia over the period from 2006 to 2008, the study also attempts to determine the impact of the global financial crisis on the Islamic banks‟ liquidity risks and financial performance. Findings of the study contribute towards enriching the literature on the risk management of the Islamic banks by providing deeper understanding on issues relating to liquidity risk management by the Islamic banks.
format Article
author Mohd Ariffin, Noraini
author_facet Mohd Ariffin, Noraini
author_sort Mohd Ariffin, Noraini
title Liquidity risk management and financial performance in Malaysia: empirical evidence from Islamic banks
title_short Liquidity risk management and financial performance in Malaysia: empirical evidence from Islamic banks
title_full Liquidity risk management and financial performance in Malaysia: empirical evidence from Islamic banks
title_fullStr Liquidity risk management and financial performance in Malaysia: empirical evidence from Islamic banks
title_full_unstemmed Liquidity risk management and financial performance in Malaysia: empirical evidence from Islamic banks
title_sort liquidity risk management and financial performance in malaysia: empirical evidence from islamic banks
publisher PPs Unsyiah
publishDate 2012
url http://irep.iium.edu.my/28987/
http://irep.iium.edu.my/28987/
http://irep.iium.edu.my/28987/1/5-Liquidity-Risk-and-Performance.doc-final.pdf
first_indexed 2023-09-18T20:42:34Z
last_indexed 2023-09-18T20:42:34Z
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