More and more domestic and foreign banks transfer their creation of liquidity records from balance sheet, to off balance sheet, and therefore some potential risks are hidden. Since the financial crisis triggered by the subprime mortgage loan default in the United States during 2007-2009, some banking institutions around the world have been influenced by a series of liquidity creating activities. This study explores the impact of liquidity creation on banks operating performances and their risks. Empirical results show that bank operating performances were negatively affected by liquidity creation in the table and however their risks were also reduced during the financial crisis period.