Open AccessLIQUIDITY MANAGEMENT AND PROFITABILITY IN ISLAMIC BANKS OF KURDISTAN REGION OF IRAQ: CIHAN BANK FOR ISLAMIC INVESTMENT AND FINANCE AS A CASE STUDY
Author(s) -
Abdulla Ibrahim Aziz,
Atheer Anwar Sharif,
Delan Ghafoor Salih
Publication year - 2017
Publication title -
international journal of research - granthaalayah
Language(s) - English
Resource type - Journals
eISSN - 2394-3629
pISSN - 2350-0530
DOI - 10.29121/granthaalayah.v5.i5.2017.1839
Subject(s) - market liquidity , profitability index , islam , accounting liquidity , business , liquidity risk , liquidity crisis , financial system , investment (military) , position (finance) , finance , philosophy , theology , politics , political science , law
This research intends to analyze the relationship between liquidity management and profitability in one of the most important Islamic banks in Kurdistan Region of Iraq, Cihan Bank for Islamic Investment and Finance P.S.C. It critically examines the bank’s liquidity ratios and the liquidity management system to analyze its effectiveness in using its liquid assets in generating positive net income. Also, it uses profitability ratios to analyze the bank’s financial position. Then, those results are used to interpret the relationship between the two variables mentioned. The research concludes that better management of liquidity is associated with better profitability. In other words, there is a negative relationship between liquidity and profits in Cihan bank during 2009 to 2015.