Risk Management in Islamic BankingLiquidity Risk Management in Islamic Banking

Authors

1 Assistant Professor at Al-Zahra University

2 Master's degree in Economic Development and Planning, Al-Zahra University

3 Ph.D. student of economics at the University of Shiraz and a faculty member of the Department of Economics at the University of the Persian Gulf

Abstract

The balance between risk and return for the banks is very important. The management of this risk is concerned in recent decades as one of the main issues in banking. In this paper, the Liquidity Risk Management in Islamic Banking is discussed.
The purpose of this paper is to introduce liquidity risk management tools in Islamic banking and policies that can be used to improve it.
Survey results indicate that Islamic banks to use different tools rather than standard banks in managing their liquidity are faced with problems. In addition, these tools are not efficient.
This paper reviews the literature on liquidity risk to receive the conclusion that in addition to cash management tools, according to the principles of Islamic banking to educate the public more, structural reforms for growth and development of the capital markets, extensive networking between banking, techniques and specific policies and efficient regulatory system to service for development is essential.

Keywords