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Moazzam Farooq and Sajjad Zaheer

deposits of Islamic Banks (IBs), Islamic Branches/Subsidiaries (ISs) and conventional banks. The liquidity crisis period runs from 27-Sep-2008 to 14-Nov-2008, during which banking sector in Pakistan lost over Rs. 130 billion or 4 per cent of deposits due to rumors regarding viability of some financial institutions. The dependent variable is change in log of deposits over seven-week liquidity crisis for bank i, branch type j (calculated as ln(deposits as on 14-Nov-2008 of Bank A Islamic operations) minus ln(deposits as on 27-Sep-2008 of Bank AIslamic operations). For each