Abstract
The study examines the effect of liquidity and funding liquidity Risk on risk taking behavior of the Pakistani banking sector during
2007-2017. By taking various proxies and applying dynamic panel data technique this study reports its findings. Results of the study
elaborate that liquidity risks and funding liquidity risks have decreased the risks taken by banks during 2007-2017. Moreover, during
Basel III-time period (2013-2017) liquidity risks and funding liquidity risks have also reduced the risks taken by the banks. The results
also conclude that liquidity risks and funding liquidity risks have no impact on bank risk taking in post Financial Crisis and pre-Basel
III-time period. The results of this study reveal size as a moderator in affecting the risk-taking behavior of Pakistani banks.
Adnan Bashir, Nasir Nadeem, Hafiz Zafar Ahmed. (2020) Impact of Liquidity Risk and Funding Liquidity Risk on Risk Taking of Pakistani Banking Industry, Paradigms , Vol 14, Issue 1.
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