Liquidity Risk Management: A Comparative Study between Conventional and Islamic Banks in Bangladesh

Abstract

This report about a comparative study on, “Liquidity Risk Management: A Comparative Study between Conventional and Islamic Banks in Bangladesh”. Evaluating the Liquidity Risk Management of Conventional and Islamic Banks in Bangladesh was the prime objective of this study. This study consider three models that are Unit root tests, ordinary lease square regression, and quintiles regression by using EViews10 software. The chosen models were applied on three randomly selected Islamic bank and three randomly selected conventional bank of Bangladesh. In the first part of the report an introduction of the bank was provided. After that, the theoretic models were discussed. It contains some basic financial and statistical analysis. Advanced analysis based on the adopted model was included in the last part just before a summary of findings. Last of all a concluding remark were drawn. On the analytical portion graph was used to provide a visual demonstration of performance and side-by-side comparison. In consideration of closing, the findings of the study reflect liquidity risk of conventional and Islamic banking industry in Bangladesh.