• Muttalib Abiola Sekoni Institute of Islamic Banking Finance (IIiBF). International Islamic University Malaysia


The criticality of liquidity to the financial intermediation institutions cannot be over-emphasized. It is germane to the survival, growth and development of Islamic banking industry. Ability to properly manage liquidity and its risk is a function of identifying causes of the risk and its degree. A bank with well managed liquidity survives any liquidity problem and stands test of the time. Proper understanding as well as managing the liquidity risk demands understanding the causes and the level of liquidity risk. This paper employs MS Excel to analyze the IBIS data in order to determine the position of the liquidity risk in Islamic banking institutions


Author Biography

Muttalib Abiola Sekoni, Institute of Islamic Banking Finance (IIiBF). International Islamic University Malaysia

Islamic Banking and Finance


Ahmad, A. S., Muhammad, T. M. and Muhamad, L. S. (2013). “How Islamic Bank of Malaysia Managing Liquidity? An Emphasis on Confronting Economic Cycle†International Journal of Business and Social Science, Vol. 4, No.7

Caruana, I (2011). “Global Liquidity: A View for Basel†A Speech delivered by General Manager Bank for International Settlement at the International Capital Markets Association Annual General Meeting and Annual conference. May

Darhmann, M. and Kleopatra, N, (2010), “Funding Liquidity Risk: Definition and Measurement†Working Paper No, 316, Bank for International Settlement (BIS), July,

Gambacorta, L. and Marques, I. (2011). “The Bank Lending Channels Lessons from the Crisis†Working Paper No, 345. Bank for International Settlement (BIS) May.

Muhammad, F. A., Khizar, A. and Shami, S. (2011). “Liquidity Risk Management: A Comparative Study between Conventional and Islamic Banks of Pakistan. Interdisciplinary Journal of Research and Business, Vol. 1, Issue 1. Pp 35-44

Murillo, C., Erasmo, G., John, R.G. and Cambell, R.H. (2011). “Acess to Liquidity and Corporate Investment in Europe during the Financial Crisis†Review of Finance, 16: pp 323-346

Sabri, M. (2013). “Liquidity Risk Management in Islamic Banks: A Survey†Afro Eurasian Studies, Vo;.1, Issue 2. Pp 215 – 230

Saheed, A. (2014). “Supervisory Consideration in Determining the Right Approach for Liquidity Management of the Islamic Financial Institutions†Speech by the Deputy Governor, State Bank of Pakistan at the Global Islamic Financial Forum; Treasurers Round Table, September 2014

Salman, S. A. (2013). “State of Liquidity Management in Islamic Financial Institutions†Journal of Islamic Economic Studies, Vol. 21, No. 1, Pp. 63 – 98.

Sayyad, Z. and Moazzam, F. (2014). “Liquidity Crisis: Are Islamic Banking Institution More Resilient?†A Paper presented at the joint RES – SPR Conference on Macroeconomic Challenges facing Low-Income Countries†January 30-31




How to Cite

Sekoni, M. A. (2016). EXPRESSIVE DESCRIPTION OF THE STATE OF LIQUIDITY RISK IN ISLAMIC BANKS. Journal of Asian and African Social Science and Humanities, 1(3), 109–116. Retrieved from