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Journal of Islamic Business & Management2025https://doi.org/10.26501/jibm/2025.1502paratext
AJG 1
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0.50

What the paper says

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 Sharah-based financial solutions and contributes towards the growth of economy.Design/Methodology/Approach: To explore the challenges and obstacles encountered by IBIs, semi-structured interviews of Sharah Advisors and bank professionals from Risk Management Department, Treasury Front Office are conducted.Findings: Based on the insights gained from experts through indepth semi-structured interviews, this study suggests that IBIs are at a disadvantage compared to conventional banks when it comes to managing the liquidity risk.Besides, interviewees opined what needs to be done so that IBIs can effectively manage their liquidity risk when faced with either excess liquidity or shortages thereof.Originality / Significance: No detailed prior work available specifically for the challenges faced by Islamic Banking Sector during the two-year period of 2019-2020 specifically and afterwards in general, where Islamic banking institutions faced the high liquid asset crunch due to non-availability of Government Ijrah Sukuk or other investment avenues and thus IBIs are forced to place their assets in the form of Cash in hand / Balances with Central Bank or alternatively placements with other banks.Research Limitations/Implications: This study explores alternative options for IBIs to manage their excess liquidity without impacting the bottom line.Thus, provides insights for banking regulators and management of IBIs.

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https://doi.org/https://doi.org/10.26501/jibm/2025.1502

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@article{unknown2025,
  title        = {{[Untitled]}},
  author       = {Unknown author},
  journal      = {Journal of Islamic Business & Management},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.26501/jibm/2025.1502},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.