Abstract:
Purpose
The purpose of this study was to find the determinants of liquidity risk exposure in banking
sector of Pakistan.
Methodology & Design
A panel data from 13 banks of Pakistan was collected for a time period of 2005-2020.
Research design includes positivist approach. Data was collected through bank’s annual
reports and later on multiple linear regression has been used to analyze the data.
Findings
Findings of the study suggest that loan loss provision, deposit and asset quality have
significant impact on liquidity risk exposure ofthe conventional banks in Pakistan.
Limitations
Major limitation of the study is that it has not taken into account the Islamic banks of
Pakistan. Furthermore, this study has considered only the liquidity risk ofthe banks.
Recommendations
Other dimensions ofrisk must be undertaken for future studies
