Liquidity and Risk Analysis of Islamic Banking System during Global Financial Crises

Abstract

During the recent financial crises many famous banks of the world went into bankruptcy. The major cause indicated by researchers was their less liquidity type nature. But at the same time it is observed that Islamic banks were almost unaffected due to this crisis and that was due to their nature of being more liquid. The liquidity analysis of Islamic banks through discussing the studies of various research scholars approves this assumption about the Islamic banks highly liquid type nature.