Hanan Ahmad Qudah, Khawla Kassed Abdo, Laith Akram Al_Qudah, Osama Kilani, Mutaz Almanaseh, Mohammad Alqudah
The study aimed to develop a model for measuring liquidity risk in Islamic banks. Liquidity was measured by a set of ratios: The Investment ratio, the capital adequacy ratio, the non-performing finance ratio, the return on assets ratio, and the return on equity ratio, The study followed the analytical and descriptive research method, as it relied on simple and multiple linear regression analysis, The study population consisted of the Jordanian Islamic banks operating in Jordan, which are Three banks, and the sample was limited to only two Jordanian banks, Jordan Islamic Bank for Finance and Investment and Islamic International Arab Bank, Safwa Islamic Bank was excluded due to the lack of sufficient data covering the period of study. The study recommended allowing Islamic banks to issue short-term Islamic financial instruments to address the liquidity problem, using it as a last resort for interest-free borrowing instead of the central bank, which Islamic banks cannot resort to in cases of liquidity shortage.
liquidity measurement, liquidity ratios, liquidity risk, Islamic banks
Cite this paper
Hanan Ahmad Qudah, Khawla Kassed Abdo, Laith Akram Al_Qudah, Osama Kilani, Mutaz Almanaseh, Mohammad Alqudah. (2021) Liquidity Risk Measurement Study Case (Jordan Islamic Banks). International Journal of Economics and Management Systems, 6, 495-503