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