Relative standing of Islamic banks in liquidity management: A survey on private banks of Bangladesh

Abstract

Commercial banks play a significant role in keeping wheel of an economy active. In Bangladesh two types of commercial banks are operating with their distinctive philosophy: Conventional and Islamic. This research work has been undertaken to measure the relative position of Islamic banks in terms of liquidity management. Data have been collected from secondary sources of information considering the fact that both banks have a widespread branch network and timely published financial results that are easy to get in their websites and also available on the internet. Liquidity positions of the sample banks have been analyzed through different ratios which have further been interpreted by using some statistical tools. Standing of Islamic banks in terms of liquidity management is good enough, but due to some practical problems its smooth operation is being interrupted. If suggested actions can be taken without undue delay, the position of Islamic banks compared to Conventional one would be much better.