khan.ashraf@spes.uniud.it

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(Supervisor Josanco Floreani. Co-supervisor Mohammad Kabir Hassan)

Relationship between liquidity risk and credit risk in Islamic banks

One of the crucial and central part of Islamic finance is its banking system i.e. Islamic banks. Functionally, Islamic banks work in the same manner as of its counterpart despite of the fact that nature and structure of the products are completely different. So, Islamic bank cannot be considered immune to all the risks which is faced by conventional banking system. Among all risks, liquidity and credit risks are the most important one to deal in banking. Theories of banking suggest that structures of asset and liability maturities of banking are closely linked, more precisely in terms of barrower default and fund withdrawals. Anecdotally, this is comparatively more crucial for Islamic banks to investigate the relationship among such risks as the nature of liaison of depositor/barrower with bank is based on partnership especially on the liability side. This study investigate the relationship between liquidity risk and credit risk. Additionally, it will also test the impact of liquidity risk on bank stability (measured by the proxy of z-score and distance to default) in Islamic banks and examine the comparative performance of liquidity risk, credit risk , and bank stability in Islamic banks in comparison to conventional banks.

PhD Students'  representative b.a. 2016-2018