The Impact of liquidity risk management on financial performance of the Islamic banks in Egypt

Document Type : Original Article

Author

Accounting department faculty of commerce Alexandria University

Abstract

Liquidity risk Management is vital to sound banking practice. Undoubtedly today all banking organizations face uncountable risks such as liquidity risk which can cause failure of a banking system. So, a good risk management practice is necessary for the existence and the development of banks. Therefore, the aim of this study is to examine the efficacy of risk management practice that is liquidity risk their impact on financial performance of Islamic   banks. Liquidity risk is measured by loan to deposit ratio, cash to total asset ratio. Financial performance measure representations wereReturn on assets (ROA) and Return on Equity (ROE). Data are piece from 2013-2017 which is taken from the financial reports of Islamic   banks. Regression analysis has been used to extract the results. The result of this study determined that how this liquidity risk will affect the bank financial performance in Egyptian Islamic banks.

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