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The relationship between new Islamic financing tools and liquidity risk in Iran's banking system: VAR approach
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Ozra Alineghad1   , Mohammad Reza Nahidi Amirkhiz2 , Ehsan Shafiei3 , Forozan Baktash4 |
1- PhD student, Islamic Economics, Islamic Azad University, Dehaghan, Iran
2- Assistant Professor, Economics, Islamic Azad University, Tabriz, Iran (Corresponding Author) , nahidi@iaut.ac.ir
3- Assistant Professor, Economics, Islamic Azad University, Tabriz, Iran
4- Assistant Professor, Economics, Islamic Azad University, Dehaghan, Iran, Iran |
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Abstract: (18 Views) |
Liquidity risk is defined as the danger of being unable to make payments on time at maturity. In this context, the instrument "Sukuk" has been introduced for financing and improves liquidity management in the banking system. The main objective of this research is to model the relationship between modern Islamic financing instruments and liquidity risk in the Iranian banking system during the period 2001 to 2021, using quarterly data and employing a vector autoregression model in the presence of cointegration. The impact of increasing lease contracts, installment sales, Salaf financing, civil participation bonds, and Mudarabah facilities on liquidity risk over a two-year short-term period has been positive, with a significant level of impact. In contrast, the contribution of Qard al-Hasan, Ja'alah, and legal partnership facilities is minimal. The effect of Sukuk on liquidity risk is negative, but its share is quite negligible. Islamic financing instruments in the Iranian economy have not reached sufficient maturity, and these tools are released indirectly under pressure on the banking system.
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Article number: 9 |
| Keywords: Liquidity Risk , Sukuk, banking system, financial provisioning, Islamic financial instruments |
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Full-Text [PDF 1557 kb]
(10 Downloads)
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Article type: Research |
Subject:
Special
Received: 2024/11/17 | Accepted: 2025/02/23 | Published: 2026/01/30
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