•  
  •  
 

Jerash for Research and Studies Journal مجلة جرش للبحوث والدراسات

Jerash for Research and Studies Journal مجلة جرش للبحوث والدراسات

Abstract

This study aims to investigate the factors affecting liquidity risk in both Islamic and conventional Jordanian banks, In order to achieve the study goals and test its hypotheses, the factors affecting liquidity risk were selected as independent variables, which are (CAR, ROA, ROE, SIZE, LOAN, CASH) and the dependent variable liquidity risk (LR). Where the study relied to achieve its goals and arrive at its results on the descriptive analytical approach for the study sample of tow Jordanian Islamic banks and tow Jordanian traditional banks between 2005 and 2018. The results showed a significant relationship between the liquidity risk and all the following (CAR, ROE, SIZE) in both Islamic and conventional banks models. However, LOAN was statistically significant in the model of traditional banks, due to the nature of the bank's traditional work, unlike Islamic banks that work for participating in the economic activities, not just finance. We have also found that Islamic banks are exposed to higher liquidity risks than traditional banks as a result of restricting their operations with Sharia law. It recommended the necessity of conducting more studies on liquidity risk, for longer time series, and for a wider range of Islamic banks regionally and globally, as a consequent need to have more comprehensive recommendations. The inclusion of external factors in liquidity risk among the independent variables of the study of the liquidity of Islamic banks and institutions.

Download

Share

COinS