Liquidity risk determinants in Islamic banks The Case study of Al Baraka Bank -Algeria – (2002-2015)

Abstract

Through this study, we aim to clarify the most important indicators used to measure the liquidity risk, and to assess the relationship between them and related variables, to study the case of Al Baraka-Algeria Bank for the period 2002-2015. By tracking the statistical behaviour and the estimated multiple regression models, the rate of return on assets did not appear in any model, while the ratio of loans to deposits was determinant of the liquidity risk, in all models with a positive relationship, regardless which liquidity index used. This necessitates studying the nature of the loans and their suitability with the nature of deposits