Mairafi, Salihu LimanHassan, SallahuddinArshad, Mohamed Bahrain Shamsul2023-12-102023-12-102018-08-13Abobakr, M. (2017). Corporate Governance and Banks Performance: Evidence from Egypt. Asian Economic and Financial Review, 7(12), 1326-1343. Acharya, V., & Naqvi, H. (2012). The seeds of a crisis: A theory of bank liquidity and risk taking over the business cycle. Journal of Financial Economics, 106(2), 349-366. Agénor, P.R., Aizenman, J., & Hoffmaister, A. (2004). The credit crunch in East Asia: what can bank excess liquid assets tell us? Journal of International Money and Finance, 23(1), 27-49. Al-Muharrami, S., & Murthy, Y.S.R. (2017). Interest banking spreads in Oman and Arab GCC. International Journal of Emerging Markets, 12(3), 532-549. Andreou, P.C., Philip, D., & Robejsek, P. (2016). Bank liquidity creation and risk-taking: Does managerial ability matter? Journal of Business Finance and Accounting, 43(1-2), 226-259. Angkinand, A.P., & Wihlborg, C. (2010). Deposit insurance coverage, ownership, and banks' risk-taking in emerging markets. Journal of International Money and Finance, 29(2), 252-274. Aspachs, O., Nier, E., & Tiesset, M. (2005). Liquidity, banking regulation and the macroeconomy. SSRN Journal. Retrived from http://dx.doi.org/10.2139/ssrn.673883https://keffi.nsuk.edu.ng/handle/20.500.14448/935This study carries out a systematic review on related empirical literature on the role of liquidity on banks’ performance as well as risk-taking. The review of existing literature revealed that bank’s liquidity has significant influence on banking outcomes such as banks performance, banks risk-taking behaviour, moral hazard, and other financial risks. However, we find that empirical evidence on all these is majorly skewed toward developed market. Therefore, we recommend that further studies in this area to provide additional insight for understanding of the impact of liquidity on the performance as well as the risk-taking behaviour and moral hazard. Thus, policy makers, banking regulators shareholder and other stakeholders will be properly guided on the potential impact of banks’ liquidity and their performance and risk-taking behaviour.enLiquidity, Systematic Review, Risk-Taking Behaviour, Performance.Article