The relationship between liquidity risk and credit risk in Islamic banking industry of Iran


Hashem Nikomaram, Mehdi Taghavi and Somayeh Khalili Diman


An integrated risk management is a process, which enables banks to measure and manage all risks, simultaneously. The recent turbulent chaos on banking industry has increase the relative importance of risk management, more than before. This paper investigates the relationship between credit risk and liquidity risk among Iranian banks. The proposed study includes all private and governmental banks as population over the period 2005-2012. The results Pearson correlation has disclosed a positive and meaningful relationship between credit and liquidity risks. Bank size also impacts on two mentioned risk factors but we there seems to be no relationship between financial chaos and type of ownership with risk factors.


DOI: j.msl.2013.02.025

Keywords: Liquidity Risk ,Credit Risk ,Financial Crisis ,Bank Size ,Bank Ownership

How to cite this paper:

Nikomaram, H., Taghavi, M & Diman, S. (2013). The relationship between liquidity risk and credit risk in Islamic banking industry of Iran.Management Science Letters, 3(4), 1223-1232.


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Corresponding author. Tel: +98-912-3443139

E-mail addresses: mohamadkhodaei@yahoo.com (H. Nikomaram))

© 2013 Growing Science Ltd. All rights reserved.

doi: 10.5267/j.msl.2013.02.025