This study examines liquidity risk management practices in Islamic banks by analyzing the determinants, governance mechanisms, mitigation strategies, and strategic implications for institutional sustainability. Employing a qualitative descriptive approach through library research, this study analyzes academic literature, regulatory documents, and previous studies related to Islamic banking risk management. The findings reveal that liquidity risk is primarily influenced by maturity mismatch, financing problems, customer withdrawal fluctuations, economic uncertainty, and governance challenges. Effective liquidity management requires integrated mechanisms involving active supervision, risk identification, measurement, monitoring, control procedures, and the implementation of Asset Liability Management (ALMA). The analysis indicates that liquidity governance extends beyond short-term financial control by functioning as a strategic capability that strengthens financial resilience, operational continuity, regulatory compliance, and stakeholder confidence. This study contributes to the development of Islamic banking risk management literature by emphasizing the importance of comprehensive and adaptive liquidity strategies in maintaining sustainable institutional performance.
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