The influence of Liquidity risk and Credit risk on Bank Stability: A Case of Pakistan

Authors

  • Usama Shafique International Islamic University, Islamabad, Pakistan and s Assistant Registrar in GIFT University, Gujranwala, Pakistan Author

Keywords:

Liquidity risk, credit risk, bank stability

Abstract

This study investigates the impact of two major sources of bank risk: Liquidity risk and Credit risk on the stability of the banks. We use a sample of commercial banks during the period 2002–2016 to analyze how this relationship influences banks’ stability. The results obtained revealed that Liquidity risk have a significant and positive and credit, risk have no effect on the stability of the banks in case of Pakistan.

Published

2019-06-30

Issue

Vol. 8 No. 2 (2019)

Section

Articles