The relationship between liquidity risk and credit risk in Islamic banking industry of Iran

Article history: Received October 28, 2012 Received in revised format 18 February 2013 Accepted 19 February 2013 Available online February 27 2013 An integrated risk management is a process, which enables banks to measure and manage all risks, simultaneously. The recent turbulent chaos on banking industry has increase the relative importance of risk management, more than before. This paper investigates the relationship between credit risk and liquidity risk among Iranian banks. The proposed study includes all private and governmental banks as population over the period 2005-2012. The results Pearson correlation has disclosed a positive and meaningful relationship between credit and liquidity risks. Bank size also impacts on two mentioned risk factors but we there seems to be no relationship between financial chaos and type of ownership with risk factors. © 2013 Growing Science Ltd. All rights reserved.