文档介绍：SalmanSyedAli
LIQUIDITYRISK& LIQUIDITYMANAGEMENT
inIslamicbanks
DistanceLearningCourse:CurrentIssuesinIslamicFinance
SalmanSyedAli
LIQUIDITYRISK& LIQUIDITYMANAGEMENT
inIslamicbanks
DistanceLearningCourse:CurrentIssuesinIslamicFinance
1
Overview
BakingTheory—Whybanksexist?
LiquidityIssuesinIslamicbanks
------------------------------
SourcesofliquidityriskinIBs
Howitismanagedandtheconsequences
------------------------------
Whatisbeingdoneandfurtherdevelopments
2
BankingTheory—Whybanksexist?
Banksasprovidersofliquidityinsurancetodepositorsandclients
Rationalefordeposittakingandlendingbysameinstitution(bank)Theoryofbankintermediation
TheNatureofBankingFirmBringsinLiquidityRisk
3
ExcessofWetorDry
LiquidityShortageAssassinofbanks
LiquiditySurplusDragoncompetitiveness
4
IslamicBanksarelikelytobemorestable
Theyhaveprofitsharingonboththeliabilitysideandassetside
5
Inpractice,IslamicBankshavefixedincomeassetsbuthaveprofitsharingonliabilityside.
TheIBstherefore,arestillmorestablethanconventionalbanks.
Solvent
Assettiedfinance
6
WhilemajorityofIslamicbanksexperienceexcessliquidity
Somehavealsofacedliquiditycrisis
Manydifferentrisksculminateinliquidityrisk
7
Liquiditycrunchcanbearealproblem
ExampleofFinancialCrisisinTurkey2000-2001
Islamicfinancialinstitutionstherefacedseverliquidityproblems
OneIslamicinstitutionIhlasFinanswasclosedduringthecrisis
8
LIQUIDITYRISK:Definition
RiskofFunding[atappropriatematuritiesandrates]
RiskofLiquidatingAssets[intimeatreasonableprices]
9
InvestmentFirm’sDefinition
“liquidityriskincludesboththeriskofbeingunabletofund[its]portfolioofassetsatappropriatematuritiesandratesandtheriskofbeingunabletoliquidateapositioninatimelymanneratreasonableprices.〞*
*(2000).
10
RegulatorsDefinition
“risktoabank’searningsandcapitalarisingfromitsinabilitytotimelymeetobligationswhentheycomeduewithoutincurringunacceptablelosses.〞*
*OfficeoftheComptroller(2000)
11
LIQUIDITYRISK:Sources
Incorrectjudgmentandcomplacency