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Credit and liquidity risks are two main risks that affect the financial stability of banks. The relationship between these risks and stability remains a subject of debate in number studies. The objective of this research is to study the influence of credit and liquidity risks on the financial stability of Burundian commercial banks. The study was based on a panel of data from eight banks operating in Burundi for the period from 2016 to 2023. The empirical results obtained from the application of the pooled squared model clearly show that credit risk has a positive and significant effect at the threshold of 5% (p-value = 0.0251) on the banking stability of Burundian commercial banks. However, liquidity risk has a negative effect and no significant effect at the same threshold (p-value = 0.3039) on their financial stability.
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Bayubahe et al. (2026) studied this question.
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