Abstract

Purpose: What are the challenges faced by the Islamic banking institutions (IBIs) of Pakistan in the management of liquidity risk and what are the possible alternatives adopted to mitigate that risk? This study discusses the challenges faced by IBIs; since Islamic banking has now been deeply rooted as an alternative banking system that offers Sharīʿah-based financial solutions and contributes towards the growth of economy.

Keywords

Liquidity Risk,Islamic Banking,Risk Management,Asset Liability Management, Sukuk