This paper aims to systematically review the existing studies on the relationship between liquidity risk management (LRM) and the financial performance of banks. 36 empirical papers published in Scopus, EBSCO host, and Google scholar were selected for analysis and review. This study suggests that the impact of LRM on the financial performance of banks still needs more empirical analyses using alternative methods and measures. Furthermore there is a need for more empirical studies to compare the quality of LRM between Islamic and conventional banks, this would help Islamic banks to know the gap in their practices, and thus will help in enhancing their performance, hence value creation. Besides that, these studies should take into account other types of banks not just listed and non-listed banks. Moreover, this study was restricted in the databases sources, the choice of number and type of keywords, language, sectors, the resulting selection of studies, and focused only on the financial and accounting indicators.