The effect of liquidity risk and credit risk on bank stability

Banks and their financial transactions have a positive impact on corporate income and the economy of the country. The purpose aimed to identify the relationship between liquidity risk and credit risk and their impact on bank stability. Therefore, paying attention to their stability conditions can have a stable economy. The present study is based on the correlation between variables in terms of applied and descriptive-survey method and, in terms of data type, is quantitative and retrospective and uses historical information and statistical methods to confirm or reject hypotheses. The statistical population of this research is 11 banks accepted in Tehran Stock Exchange during the period of 1390-1394. The research findings show that there is a significant relationship between liquidity risk and credit risk, as well as liquidity risk and credit risk affect the instability of the bank.