Student Name

Ehtisham AliFollow

Degree

Master of Science in Islamic Banking & Finance

Department

Department of Finance

Faculty/ School

Faculty of Business Administration (FBA)

Date of Submission

Spring 2020

Supervisor

Dr. Irum Saba, Assistant Professor, Center of Excellence in Islamic Finance, Institute of Business Administration (IBA), Karachi

Co-Supervisor

Dr. Hassan Shakeel, Assistant Professor, UMT, Lahore

Abstract

Banks in particular and other financial institutions in general pay special attention to the liquidity management to avoid any abrupt scenarios. It is a challenge for all financial institutions, whether they are conventional or Islamic. Unlike conventional banks, it possesses a bigger challenge for Islamic banks with more constraints to manage liquidity through traditional methods. This research will investigate issues in liquidity management faced by Islamic banking industry of Pakistan. How market perceive central bank’s role as lender of last resort and Islamic money market development to facilitate Islamic banking industry of Pakistan. How well banks: Islamic banks to Islamic banks & Islamic banks to conventional banks can accommodate themselves in efficient liquidity management with variety of shariah compliant products and solutions. Is there exists a need of development of Islamic money markets as well as capital markets to facilitate Islamic banking industry in particular and general public at large.

Liquidity management is a crucial component in treasury operations; operations which are concerned with maximizing the benefits of surplus funds and minimizing the cost of shortfalls through careful investment and considered borrowing. Effective utilization of Islamic banking liquidity to finance various Government and semi government projects. It will also study the direct relationship between liquidity management and profitability of the bank and profit returns to the depositors. Islamic banking liabilities (deposits) and assets models, with regard to liquidity management.

Document Type

Restricted Access

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