The Implications of Liquidity Risks on the Going Concern of Financial institutions - An Applied Study on Jordan Alahli Bank for the Period (2019/2023)

Abstract

The existence and going concern of banks depends on liquidity, so this study explains the relationship between liquidity risk management, and the success of financial institutions, and the effectiveness of risk management, which has a direct impact on the overall performance of banks through research and analysis. The study highlights the important role played by liquidity indicators, such as cash coverage ratio (CCR), statutory liquidity ratio (SLR), and employment ratio (ER), in enhancing bank continuity. The study at the Jordan National Bank concluded several results, the most important of which is the failure to generate cash leads to the risk of meeting liabilities and the possibility of facing financial distress.