Risk Management For Islamic Banks

Author by : Imam Wahyudi
Languange : en
Publisher by : John Wiley & Sons
Format Available : PDF, ePub, Mobi
Total Read : 74
Total Download : 335
File Size : 48,8 Mb
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Description : Gain insight into the unique risk management challenges within the Islamic banking system Risk Management for Islamic Banks: Recent Developments from Asia and the Middle East analyzes risk management strategies in Islamic banking, presented from the perspectives of different banking institutions. Using comprehensive global case studies, the book details the risks involving various banking institutions in Indonesia, Malaysia, UAE, Bahrain, Pakistan, and Saudi Arabia, pointing out the different management strategies that arise as a result of Islamic banking practices. Readers gain insight into risk management as a comprehensive system, and a process of interlinked continuous cycles that integrate into every business activity within Islamic banks. The unique processes inherent in Islamic banking bring about complex risks not experienced by traditional banks. From Shariah compliance, to equity participation contracts, to complicated sale contracts, Islamic banks face unique market risks. Risk Management for Islamic Banks covers the creation of an appropriate risk management environment, as well as a stage-based implementation strategy that includes risk identification, measurement, mitigation, monitoring, controlling, and reporting. The book begins with a discussion of the philosophy of risk management, then delves deeper into the issue with topics like: Risk management as an integrated system The history, framework, and process of risk management in Islamic banking Financing, operational, investment, and market risk Shariah compliance and associated risk The book also discusses the future potential and challenges of Islamic banking, and outlines the risk management pathway. As an examination of the wisdom, knowledge, and ideal practice of Islamic banking, Risk Management for Islamic Banks contains valuable insights for those active in the Islamic market.


Mapping The Risks And Risk Management Practices In Islamic Banking

Author by : Wael Kamal Eid
Languange : en
Publisher by : John Wiley & Sons
Format Available : PDF, ePub, Mobi
Total Read : 43
Total Download : 276
File Size : 41,5 Mb
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Description : Deep, insightful analysis of controversial risk management issues in Islamic banking Mapping the Risks And Risk Management Practices In Islamic Banking is a comprehensive analysis of the current state of risk management practices within the Islamic banking industry, with recommendations for policy makers, bankers, and industry stakeholders. Going beyond the academic, this book presents the opinions and perceptions of industry financiers and bankers, alongside primary information and data collected by Islamic finance professionals to deconstruct and analyze the sector's current risk management practices. You'll get up to date on the latest attitudes and trends, and delve into the current issues surrounding risk management in Islamic banks. With a focus on practical applications, this authoritative guide discusses the unique risks facing Islamic banks, from the perspective of a wide range of practitioners. Risk management is one of the biggest, most controversial issues in Islamic finance, yet it remains under-researched. Many uncertainties exist for which the answers are still unclear, yet will play a large role in shaping the industry's future. This book digs deep into current ideas and practices to discover what's being done, what needs to be done, and what needs to stop happening to keep the future of Islamic finance strong. Explore both Islamic and traditional attitudes toward risk Examine current Islamic risk management practices Understand the latest industry issues and trends Consider the diverse range of risks unique to the Islamic banking sector Effective risk management in Islamic banking deserves priority attention. Unless the industry develops its own genuine risk management architecture, it cannot achieve its full potential and the viability needed for a more resilient financial system than the debunked Wall Street model. Mapping the Risks and Risk Management Practices in Islamic Banking provides a deep, authoritative analysis of where the industry is today and where it needs to develop.


Mapping The Risks And Risk Management Practices In Islamic Banking

Author by : Wael Kamal Eid
Languange : en
Publisher by : John Wiley & Sons
Format Available : PDF, ePub, Mobi
Total Read : 19
Total Download : 151
File Size : 53,8 Mb
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Description : Deep, insightful analysis of controversial risk management issues in Islamic banking Mapping the Risks And Risk Management Practices In Islamic Banking is a comprehensive analysis of the current state of risk management practices within the Islamic banking industry, with recommendations for policy makers, bankers, and industry stakeholders. Going beyond the academic, this book presents the opinions and perceptions of industry financiers and bankers, alongside primary information and data collected by Islamic finance professionals to deconstruct and analyze the sector's current risk management practices. You'll get up to date on the latest attitudes and trends, and delve into the current issues surrounding risk management in Islamic banks. With a focus on practical applications, this authoritative guide discusses the unique risks facing Islamic banks, from the perspective of a wide range of practitioners. Risk management is one of the biggest, most controversial issues in Islamic finance, yet it remains under-researched. Many uncertainties exist for which the answers are still unclear, yet will play a large role in shaping the industry's future. This book digs deep into current ideas and practices to discover what's being done, what needs to be done, and what needs to stop happening to keep the future of Islamic finance strong. Explore both Islamic and traditional attitudes toward risk Examine current Islamic risk management practices Understand the latest industry issues and trends Consider the diverse range of risks unique to the Islamic banking sector Effective risk management in Islamic banking deserves priority attention. Unless the industry develops its own genuine risk management architecture, it cannot achieve its full potential and the viability needed for a more resilient financial system than the debunked Wall Street model. Mapping the Risks and Risk Management Practices in Islamic Banking provides a deep, authoritative analysis of where the industry is today and where it needs to develop.


Risk Management For Islamic Banks

Author by : Anonim
Languange : en
Publisher by : John Wiley & Sons
Format Available : PDF, ePub, Mobi
Total Read : 41
Total Download : 745
File Size : 49,6 Mb
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Description : Gain insight into the unique risk management challenges within the Islamic banking system. Risk Management for Islamic Banks: Recent Developments from Asia and the Middle East analyzes risk management strategies in Islamic banking, presented from the perspectives of different banking institutions. Using comprehensive global case studies, the book details the risks involving various banking institutions in Indonesia, Malaysia, UAE, Bahrain, Pakistan, and Saudi Arabia, pointing out the different management strategies that arise as a result of Islamic banking practices. Readers gain insight into risk management as a comprehensive system, and a process of interlinked continuous cycles that integrate into every business activity within Islamic banks. The unique processes inherent in Islamic banking bring about complex risks not experienced by traditional banks. From Shariah compliance, to equity participation contracts, to complicated sale contracts, Islamic banks face unique market risks. Risk Management for Islamic Banks covers the creation of an appropriate risk management environment, as well as a stage-based implementation strategy that includes risk identification, measurement, mitigation, monitoring, controlling, and reporting. The book begins with a discussion of the philosophy of risk management, then delves deeper into the issue with topics like: -Risk management as an integrated system -The history, framework, and process of risk management in Islamic banking -Financing, operational, investment, and market risk -Shariah compliance and associated risk. The book also discusses the future potential and challenges of Islamic banking, and outlines the risk management pathway. As an examination of the wisdom, knowledge, and ideal practice of Islamic banking, Risk Management for Islamic Banks contains valuable insights for those active in the Islamic market.


Risk Analysis For Islamic Banks

Author by : Hennie van Greuning
Languange : en
Publisher by : World Bank Publications
Format Available : PDF, ePub, Mobi
Total Read : 25
Total Download : 248
File Size : 48,6 Mb
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Description : Islamic finance is emerging as a rapidly growing part of the financial sector in the Islamic world and is not restricted to Islamic countries, but is spreading wherever there is a sizable Muslim community. According to some estimates, more than 250 financial institutions in over 45 countries practice some form of Islamic finance, and the industry has been growing at a rate of more than 15 percent annually for the past several years. The market's current annual turnover is estimated to be $70 billion, compared with a mere $5 billion in 1985, and is projected to hit the $100 billion mark by the turn of the century. Since the emergence of Islamic banks in the early 1970s, considerable research has been conducted, mainly focusing on the viability, design and operations of a deposit-accepting financial institution, which operates primarily on the basis of profit and loss partnerships rather than interest. This publication provides a comprehensive overview of topics related to the assessment, analysis, and management of various types of risks in the field of Islamic banking. It is an attempt to provide a high-level framework (aimed at non-specialist executives) attuned to the current realities of changing economies and Islamic financial markets. This approach emphasizes the accountability of key players in the corporate governance process in relation to the management of different dimensions of Islamic financial risk.


Financial Risk Management For Islamic Banking And Finance

Author by : I. Akkizidis
Languange : en
Publisher by : Springer
Format Available : PDF, ePub, Mobi
Total Read : 90
Total Download : 170
File Size : 51,6 Mb
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Description : Financial institutions are increasingly providing Islamic financial contracts in global markets. As a result of this market growth there is a high demand to understand how to assess and manage the risks arising from applying Islamic financial products and services. Credit, operational, market and liquidity risks together with the risk of non compliance with the Shariah law are becoming very hot issues for financial institutions. This book presents a common framework on how to efficiently manage the risks faced.


Risk Management For Islamic Banks

Author by : Rania Abdelfattah Salem
Languange : en
Publisher by : Unknown
Format Available : PDF, ePub, Mobi
Total Read : 87
Total Download : 760
File Size : 51,7 Mb
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Description : This guide provides an integrated, structured process for managing risks in Islamic banks. It includes risk identification, measurement and mitigation, and compares risk management in conventional and Islamic banks. Using simulated Islamic bank financial statements, it demonstrates the integrated risk management process, and investigates how risk regulatory insights have implications for banking policy.


An Alternative Approach To Liquidity Risk Management Of Islamic Banks

Author by : Muhammed Habib Dolgun
Languange : en
Publisher by : Walter de Gruyter GmbH & Co KG
Format Available : PDF, ePub, Mobi
Total Read : 94
Total Download : 918
File Size : 45,9 Mb
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Description : Despite noticeable growth in Islamic banking and finance literature in recent years, very few published books in this area deal with supervisory and regulatory issues in Islamic banking – theoretically or empirically – and none with the critical issue of risks involved in liquidity management of Islamic banks. This unique book is the first of its kind in dealing with challenges these financial institutions face in the absence of interest rate mechanism and debt-based financial instruments. The book examines critically issues involve in managing the risk of liquidity management for these types of institutions, including those stemming from Basel requirements. It then offers an alternative regulatory framework more appropriately suited for such banks without compromising safety and security. The book's unique features and innovative dimensions diagnostically differentiate between Islamic banks and conventional banks as related to liquidity management risks. It proposes a risk-sharing regulatory framework that, once implemented, would mitigate risks posed by balance-sheet mismatches. The book aims to assist regulators, supervisors, Islamic finance practitioners, academicians and other relevant stakeholders.


Risk Management Implementation And Solutions For Islamic Banking And Finance

Author by : Omar Masood
Languange : en
Publisher by : Cambridge Scholars Publishing
Format Available : PDF, ePub, Mobi
Total Read : 45
Total Download : 455
File Size : 42,7 Mb
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Description : Islamic finance is a growing part of the global financial sector. The risks faced by Islamic banks are real, and how well they mitigate them will determine their future. This book answers questions regarding how Islamic Financial Institutions should focus on their risk management practices and the necessary solutions and policy implementation tactics. It also analyses the risk mitigation techniques Islamic institutions are putting to use, looking at different Islamic banks from across the world to investigate their strategies and solutions. Among the topics discussed here are the implementation and outcomes of Basel III, practical enterprise risk management practices, liquidity risk management, and the success story of the global takaful industry.


Risk Management In Islamic Banking

Author by : Bassem Fawzi Dagher
Languange : en
Publisher by : Unknown
Format Available : PDF, ePub, Mobi
Total Read : 75
Total Download : 447
File Size : 44,8 Mb
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Description : Islamic finance is emerging as a rapidly growing part of the financial sector in the Islamic and recently in non-Islamic countries. Risk management is a crucial element in Islamic banking due to the nature of its operations. This paper stud ies the risk management system of the Islamic banks operating in Lebanon. Partic ularly, a survey was conducted to assess the status of all Islamic banks in Leba non. A statistical approach was followed to evaluate the degree of adoption of t he recommendations set by the Islamic Financial Services Board (IFSB) and the Ba sel Committee on Banking Supervision (BCBS). Those recommendations include the princ iples related to the responsibilities of the board of directors in formulating a clear and comprehensive risk management strategy. They also tackle the tools us ed by these banks to identify, monitor, control, and mitigate the main types of risks. The data collected showed that the degree of adoption of these principles varies from one bank to another; however, in general, the Islamic banking indus try in Lebanon lacks important regulations and procedures related to risk manage ment.


An Alternative Approach To Liquidity Risk Management Of Islamic Banks

Author by : Muhammed Habib Dolgun
Languange : en
Publisher by : Walter de Gruyter GmbH & Co KG
Format Available : PDF, ePub, Mobi
Total Read : 65
Total Download : 156
File Size : 46,8 Mb
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Description : Despite noticeable growth in Islamic banking and finance literature in recent years, very few published books in this area deal with supervisory and regulatory issues in Islamic banking – theoretically or empirically – and none with the critical issue of risks involved in liquidity management of Islamic banks. This unique book is the first of its kind in dealing with challenges these financial institutions face in the absence of interest rate mechanism and debt-based financial instruments. The book examines critically issues involve in managing the risk of liquidity management for these types of institutions, including those stemming from Basel requirements. It then offers an alternative regulatory framework more appropriately suited for such banks without compromising safety and security. The book's unique features and innovative dimensions diagnostically differentiate between Islamic banks and conventional banks as related to liquidity management risks. It proposes a risk-sharing regulatory framework that, once implemented, would mitigate risks posed by balance-sheet mismatches. The book aims to assist regulators, supervisors, Islamic finance practitioners, academicians and other relevant stakeholders.


Liquidity And Liquidity Risk Management In Islamic Banks

Author by : Sekoni Abiola Muttalib
Languange : en
Publisher by : Unknown
Format Available : PDF, ePub, Mobi
Total Read : 41
Total Download : 843
File Size : 54,9 Mb
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Description : The major business of the banks is maturity transformation of funds through mobilization of deposits which are repayable on short notice demand and use the deposits to provide longer period financing or credit facilities to the borrowers. Inability of the banks to match depositors' demand for withdrawal with realization of longer-term assets exposes banks to liquidity risk. Thus, liquidity management becomes a critical issue/area that calls for attention and prudential supervision by the banking regulators. Past and recent failure episodes of many conventional banks, various financial crises experienced by few Islamic banks in the recent past, and current global financial crisis are testimonies to the fact that liquidity risk (shortages) is a direct consequence of ineffective and inefficient liquidity management. In a nutshell, liquidity risk is a critical issue which is detrimental to the health of financial system and harmful to the real economy. Though, given the perception of the worldwide ongoing rapid growth of the Islamic financial industry, the assumption is that Islamic financial system enjoys surplus liquidity. Hence, it is not vulnerable to this problem. However, the recent failure and closure of some Islamic banks spurred by financial crisis is a sufficient proof that there is a need for sound financial stability and efficient liquidity management which requires urgent attention and redress in order to protect the reputation of the nascent Islamic banking industry. Therefore, this study through the participation of practitioners in some full fledged Islamic banks, subsidiaries and Islamic windows and experts in Islamic banking and finance intends to investigate the causes of the liquidity problems in Islamic Banks in spite of the claimed excess liquidity, patronage and continuous growth being enjoyed by Islamic financial institutions, and determine how effective and efficient liquidity management can be achieved. The study employed quantitative data analysis using statistical tools such as SPSS 16.0 and AMOS 16.0 and statistical techniques like Descriptive Statistic, Factor Analysis and Structural Equation Modeling (SEM). The findings revealed the impacts of regulation and supervision, Islamic financial instruments; Islamic corporate governance and Islamic financial ethics towards ensuring sound liquidity risk management in Islamic banks and also identified strategies for enhancing Islamic banking liquidity risk management. The Structural Equation Modeling produced a model fit for the Islamic banking liquidity risk management framework which confirmed the relationship between liquidity risk management and its hypothesized predictors.


Risk Management A Comparative Study Of Regulations And Practices In One Conventional And One Islamic Bank In Pakistan

Author by : Muhammad Asadullah Bilal
Languange : en
Publisher by : GRIN Verlag
Format Available : PDF, ePub, Mobi
Total Read : 95
Total Download : 408
File Size : 52,9 Mb
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Description : Master's Thesis from the year 2018 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: B, , language: English, abstract: The purpose of this research study is to figure out the differences in rules/regulations and practices regarding risk management in Islamic and conventional banks in Pakistan. Keeping in view the research questions, the nature of this research is a qualitative case study. The findings of the study reveal that there exists a substantial difference between Islamic and conventional banks in risk management practices, risk identification, liquidity risk analysis and risk governance. Islamic bank is performing competently in liquidity risk analysis, whereas, conventional bank is competent in risk management practice, risk identification, and risk governance. The risk management, risk monitoring and reporting, and liquidity risk analysis are weak in Islamic banks. Whereas, risk analysis and assessment are weak in conventional banks. Due to lack of risk management training and limited knowledge of risk management practices, understanding of risk management practices is weak in Islamic bank. The study also reveals that in terms of rules and regulations, there is no proper institutionalisation of Islamic institutions regarding risk management as compared to conventional banking where the risk management practices are institutionalised by Basel Committee on Banking Supervision.


Risk Management In Islamic Banking

Author by : Abdul Sattar
Languange : en
Publisher by : LAP Lambert Academic Publishing
Format Available : PDF, ePub, Mobi
Total Read : 28
Total Download : 153
File Size : 40,6 Mb
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Description : Islamic Banking and Finance is known to be the fastest growing economic system of the current time. It has always been in discussion that how the unique engraved risks of Islamic Finance be avoided or reduced to minimum. This book provides a comprehensive and all-encompassing view of different Risk Management Practices in Islamic Banking and Finance. This Book is equally helpful for students to build a theoretical understanding of Risk Management Techniques in Islamic Banking as well as for professionals who are practically applying these practices. This book will help them manage different risks in Islamic Banking field more appropriately.


Risk Management In The Islamic Financial Services Industry

Author by : Anonim
Languange : en
Publisher by : Unknown
Format Available : PDF, ePub, Mobi
Total Read : 46
Total Download : 331
File Size : 55,7 Mb
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Description : The potential of the Islamic financial services industry is high, since Islamic banking and Islamic insurance have been continuously growing over the last decade. Irrespective of this growth, research about Islamic finance has been rare. Therefore, this work tries to partly close this gap by examining the risk management of Islamic financial institutions. Thereby, the risk management techniques of conventional and Islamic banks as well as insurance companies are compared, an empirical analysis that contrasts the insolvency risk, measured by the Z-Score, of conventional and Islamic financial institutions is conducted and hypothetical case studies that assess the potential and challenges of Western banks and insurance companies when entering the Islamic market are performed. This paper shows that there exist major differences between the risk management of Islamic and conventional financial institutions as a result of the condition to align all financial transactions in Islamic finance with the Islamic law, the Sharia. Moreover, the work reveals that there is no significant difference in the insolvency risk between Islamic and conventional financial institutions neither in the banking nor in the insurance industry. Furthermore, it can be highlighted that Western banks and insurance companies would face great challenges when entering into the Islamic market.


Shari Ah Non Compliance Risk Management And Legal Documentations In Islamic Finance

Author by : Ahcene Lahsasna
Languange : en
Publisher by : John Wiley & Sons
Format Available : PDF, ePub, Mobi
Total Read : 35
Total Download : 979
File Size : 51,6 Mb
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Description : A comprehensive guide to one of the key risk management issues in the expanding field of Islamic finance For Islamic financial institutions, Sharia non-compliance is a growing and key risk that must be carefully managed. This book offers a thorough look at non-compliance risk and explains the legal documentation necessary to ensure compliance for professionals in the Islamic finance industry. In addition, the book offers helpful guidance and understanding for the legal departments of Islamic financial institutions, as well as lawyers, legal firms, Shariah advisors, Shariah officers, and students studying Islamic finance. The book covers fundamental concepts, major risk elements, tools and techniques for identifying non-compliance, legal documentation, and the impact of non-compliance, among other vital topics. Offers comprehensive coverage of the growing field of non-compliance risk management in Islamic finance Includes in-depth coverage of legal documentation Written by an expert on the topic who teaches at INCEIF, The Global University for Islamic Finance and IIUM, International Islamic University of Malaysia in Malaysia


Credit Risk Management In Islamic Banks

Author by : Nicolas Jacques Baumgartner
Languange : en
Publisher by : Unknown
Format Available : PDF, ePub, Mobi
Total Read : 57
Total Download : 640
File Size : 53,7 Mb
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Description : Credit Risk Management in Islamic Banks is one of the biggest issues facing Western regulators. The precepts of Islamic finance and its profit-and-loss sharing principle mean that depositors effectively bear credit (and market) risk(s). This is hardly compatible with the current legislation and Basel II. Indeed, Islamic Banks, unlike their conventional counterparts are effectively a mixture of a bank and an investment fund. This thesis analyses credit risk in the different contracts of Islamic Finance. Also the different structures Islamic Banks can have are scrutinised in order to understand how they differ from conventional ones. Existing regulation is then critically examined in order to create alternatives to the current legal framework. This thesis makes a strong case to encourage Swiss regulators to initiate the necessary changes to attract Islamic Banks in Switzerland, since Islamic Private Banking has much potential and the Swiss banking sector could only benefit from it.


Credit Risk Management In Islamic Banks

Author by : Nicolas Jacques Baumgartner
Languange : en
Publisher by : Unknown
Format Available : PDF, ePub, Mobi
Total Read : 12
Total Download : 635
File Size : 43,8 Mb
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Description : Understanding credit risk in Islamic Banking will be key to facilitating the assimilation of Shariah- compliant institutions in Switzerland. Increasing demand from Muslim HNWIs and UHNWIs for alternatives to conventional private banking is likely to challenge regulators, as the current legal framework is not adapted to Islamic Banks. While most instruments used in Islamic Banking are different in form from standard financial contracts, these are already fully regulated. The main challenge however lies in applying capital adequacy requirements to Islamic Banks. This book explains how Swiss banking regulation will need to be adapted in order to allow Islamic Banks to follow Islamic economic precepts in their approach to Credit Risk Management.


Islamic Banking In Practice Volume 2

Author by : Safdar Alam
Languange : en
Publisher by : Fidens Press
Format Available : PDF, ePub, Mobi
Total Read : 45
Total Download : 828
File Size : 48,5 Mb
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Description : This is how Islamic Banking really works ​ In a sector where publications focus on theory, the Islamic Banking in Practice series concentrates solely on market practice. ​ The evolution of principles into practice is explained clearly and concisely. Sukuk ​ Sukuks, sometimes referred to as the Islamic version of bonds, are one the most visible products in islamic banking and finance, and with a global reach. ​ This volume will explain why Sukuks were created, and how they work. The different structures of Sukuk will be explained, and reinforced through detailed analysis of market transactions. ​ Areas covered include Issuance process Pricing Asset injection Risk management Shariah compliance Chapter headings include Common Sukuk structures Ijara, Musharakah, Mudarabah, Wakala, Murabaha Project finance Perpetual Equity linked / Exchangeable Hybrid Shariah compliance AAOIFI developments Credit rating Defaults The issue of a "True Sale"


Islamic Banking And Risk Management

Author by : Faten Ben Bouheni
Languange : en
Publisher by : LAP Lambert Academic Publishing
Format Available : PDF, ePub, Mobi
Total Read : 56
Total Download : 205
File Size : 51,7 Mb
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Description : Islamic financing system is based on the framework given by the Shariah. Shariah is basically the rules and principals, which are originated from the Quran and Sunnah. Islamic scholars also elaborated the Islamic rules in Islamic jurisprudence according to the framework of Quran and Sunnah. Furthermore, Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Shariah) principles and guided by Islamic economics. Like conventional banks, Islamic banks are exposed to the some kinds of risks.However, in the case of Islamic banks, added attention must be paid to the contractual role of the bank, when analyzing the risks inherent in the bank's assets and liabilities. Because, Islamic banks are also, exposed to Shariah law risk which is related to the structure and functioning of Shariah boards at the institutional and systemic level. Moreover, the industries of Islamic Finance and Banking are still young so there are many problems that are facing his implementation and growth. Hence, the structure of the Islamic banks can be improved by taking some steps that are presented in this book.


Islamic Banking In Practice Volume 1

Author by : Safdar Alam
Languange : en
Publisher by : Unknown
Format Available : PDF, ePub, Mobi
Total Read : 66
Total Download : 253
File Size : 41,7 Mb
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Description : This is How Islamic Banking Really Works In a sector where publications focus on theory and are rarely written by experienced practitioners, the Islamic Banking in Practice series concentrates firmly on market practice. The evolution of principles into practice is explained clearly and concisely. How is a simple sale of metal used to deliver a total return swap? How is are commodities bought and sold in order to create an fx forward? How do Islamic banks hedge risk without the use of interest rate swaps? The reader is guided, step-by-step, as to how financial institutions create products, while ensuring compliance with Islamic commercial law. Written by a globally recognised practitioner, structuring and transactions are presented and explained in detail, covering Structuring Risk Pricing Documentation Execution The Islamic Banking in Practice series will cover the following areas: Volume 1 Liquidity, Risk Management and Structured Investments Volume 2 Sukuk (now also available as E-Book and paperback on Amazon) Volume 3 Retail Banking, Financing and Investments Volume 4 A detailed evaluation of the industry REVIEW "This is a book written by a practitioner in Islamic Finance, Safdar Alam, about what many would consider to be quite a dry topic, that of Islamic Banking. In fact, that is quite simply not the case. This is a book as the author describes it as "A download of what I have done and what I know.". From its very outset, this first volume, which tackles money market, FX and other market contracts, gives the view of a pioneer in the industry who was challenged with a blank sheet of paper and asked to create something from the ground up, without any guidance, without a frame of reference and the minimum of support infrastructure. The story that unfolds is very readable. The book captures the imagination vividly of what it was really like in this industry less than 20 years ago, when the pioneering spirit of a few created the global industry that we now see today. This is about as real as it gets because there is a very big difference between creating something yourself and replicating something that has already been created. The author, in both a logical and engaging fashion takes us through this journey and shares his insights "warts and all" of what it took to do the needful. I would consider this book as essential reading for practitioners, students, academics and anyone who shares an interest in finding out how something new is created from the ground up. I, for one, eagerly await the sequel in Volume 2 on Sukuk." By Daud Vicary Abdullah Managing Director of DVA Consulting and former President and CEO of INCEIF The Global University of Islamic Finance


Credit Risk Management Practices And Their Determinants

Author by : Yono Haryono
Languange : en
Publisher by : Unknown
Format Available : PDF, ePub, Mobi
Total Read : 90
Total Download : 198
File Size : 50,5 Mb
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Description : Credit risk is deemed to be the leading source of problems in banking institutions. This thesis aims to analyze the management of credit risk in the Indonesian Islamic banking industry, particularly to evaluate the practices of credit risk management of Islamic banks and to compare the factors differentiating credit risk management practices between Islamic banks and conventional banks. In addition, the study aims to determine the key factors affecting credit risk in Islamic banks for the period of 2004 to 2012 and to examine the relationship between credit risk and financing structure. The study applies both quantitative and qualitative methods to handle different aspects of the research objectives and to gather all relevant information on credit risk management and to construct the main output of the study. This study utilizes three statistical analyses and econometric models, which are a dynamic panel data analysis, Ordinary Least Square (OLS) regression analysis, logistic regression coupled with a questionnaire survey and a qualitative interview technique to evaluate empirical evidence regarding credit risk management practices of Islamic banks operating in Indonesia. The overall summary of results shows that while most of the results are in line with the expectations, others are not in line with the underlying theories, which are life-cycle theory of consumption and agency theory. The findings show that the key factors affecting credit risk in Indonesian Islamic banks are real GDP growth, financing growth, bank size, profitability, cost efficiency and ownership concentration. However, the results also indicate that three explanatory variables which include unemployment rate, bank’s capital and diversification do not support their respective hypotheses since the coefficients of these variables are in the opposite direction as expected by the theory. Furthermore, with regard to credit risk management practices (CRMP), the results show that there is a general understanding of CRMP throughout the Islamic banking system in Indonesia, and all the aspects of credit risk management have a positive relationship with CRMP. By providing the empirical evidence on the factors affecting credit risk in Indonesian Islamic banks, it is hoped that this study could enhance greater understanding of credit risk management framework. Furthermore, it is hoped that the findings could create awareness to the Islamic banks regarding factors affecting credit risk in Islamic banks so that they can properly manage credit risks. In addition, the finding from the study would be useful to the policymakers and regulators in making informed decisions and formulating policies that will indeed contribute to the bottom-line of the banks and indirectly help to prevent systemic risk.


Islamic Banking And Financial Crisis

Author by : Habib Ahmed
Languange : en
Publisher by : Edinburgh University Press
Format Available : PDF, ePub, Mobi
Total Read : 94
Total Download : 919
File Size : 40,7 Mb
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Description : Examines the resilience of Islamic banking during the global financial crisis and lessons for risk management. Do Islamic financial institutions perform better than their conventional counterparts during periods of financial stress? To what extent do systems for managing risk have to be adapted for Islamic financial institutions, given the unique characteristics of their assets and liabilities and the need for shari'ah compliance? These issues have come to prominence since the global financial crisis of 2007-8 and the subsequent recession, and are addressed in this book. The challenges for Islamic financial institutions are explored in an international post Basel II system where banks are required to have more capital and liquidity. Governance issues are also examined, given their influence on client and investor perceptions and their ultimate implications for institutional stability and sustainability.Offers an in-depth assessment of how Islamic banks weathered the financial crisis and what lessons can be learnt. Asks whether Islamic banks are inherently more stable than conventional banks during periods of economic stress. Examines how Islamic banks manage risk, focusing on liquidity risk and the use of forward contracts to mitigate currency risk. Appraises the work of internal shari'ah audit units and the use of shari'ah reports to reduce non-compliance risks. Features case studies from the Gulf, Malaysia, the UK, Pakistan, Turkey and GCC countries.


Governance Risk Management And Financial Product Development In Islamic Financial Institutions

Author by : Michael Bock
Languange : en
Publisher by : GRIN Verlag
Format Available : PDF, ePub, Mobi
Total Read : 62
Total Download : 208
File Size : 49,9 Mb
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Description : Master's Thesis from the year 2010 in the subject Business economics - Investment and Finance, grade: 1,7, Maastricht University (School of Business and Economics), course: -, language: English, abstract: 1.1 General Introduction to the Topic Islamic finance is on the march. The underlying logic is simple: All investments and services are consistent with the principles of Islamic law, called Shari’ah, which literally means ‘a clear path to be followed and observed’ (Hourani, 2004a). This clear path is followed only if profit does not stem from interest (riba), speculation (gharrar) or sectors that are considered sinful according to the Qur’an (haraam), namely everything that involves alcohol, tobacco, entertainment, gambling or pork, just to name a few. The high potential of Islamic finance is clear for three reasons. The first reason relates to the emergence of a new consumer type, as there is increased demand for a Shari’ah-compliant way of investing that stems from increased globalization. The middle class from emerging markets rose from one third to 56 percent between the 1990s and 2006 (The Economist, 2009). Many Muslim countries can be found in the list of emerging markets, such as Egypt, Pakistan and Indonesia. With the Muslim population of the world exceeding 1.5 billion people (about 21 percent of the world population) and due to the fact that it is the fastest growing religion, it becomes clear why the general conditions for Islamic finance are so favourable (Central Intelligence Agency, 2009). The second reason relates to the global trend for sustainable investment; the fact that Islamic finance is an ethical way of investing which does not invest in harmful businesses and instead donates purified gains to charity is becoming more and more attractive among non-Muslim investors as well (Global Finance, 2007). The Shari’ah aspect makes Islamic financial products an alternative to socially responsible investments (Khan, 2009). The last reason is a matter of trust; in the face of the financial crisis that began shattering the world in 2007, many investors lost confidence in the traditional banks and their practices (Reuters, 2008; CNN, 2009). Today even the Holy See states that ‘the ethic principles on which Islamic finance is based may bring banks closer to their clients and to the spirit which should mark every financial service’ (Bloomberg, 2009). According to recent estimates, IFIs could increase their assets under management from roundabout $700 billion to over $1.6 trillion in 2012 (Reuters, 2009). WICHTIG: Sämtliche Recherchetätigkeiten wurden bei in den Vereinigten Arabischen Emiraten ansässigen islamischen Banken vor Ort durchgeführt.


The Management Of Liquidity Risk In Islamic Banks The Case Of Indonesia

Author by : Anonim
Languange : en
Publisher by : Unknown
Format Available : PDF, ePub, Mobi
Total Read : 68
Total Download : 785
File Size : 40,5 Mb
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Description : Islamic banking and finance has shown progressive development all over the world since its inception as a commercial banking model in mid-1970s. Indonesia, as the largest Moslem nation in the world, has initiated some policies to expand the Islamic banking industry in the country. Similar to conventional banks, Islamic banks face a number of risk areas, which may affect their performance and operations. One of such risk areas is liquidity risk, which shows additional features in the case of Islamic banks. Both the international banking standards and the Sharia guidance suggest that banks should have: robust liquidity risk management policies, a responsive asset and liability committee, effective information and internal control systems and, methods for managing deposits to reduce on-demand liquidity, to manage liquidity risk. The aim of this research, hence, is to analyze the management of liquidity risk in Islamic banks through balancing assets and liabilities with the ultimate objective to recommend policies to improve the management of liquidity risk. This aim is fulfilled in the case of Indonesian Islamic banking industry. The data collection and analysis method in this research involve triangulation method with a combination of quantitative and qualitative methods to achieve such aim and objective. Particularly, both the performance analysis of the industry and the econometric time series analysis were conducted to analyze the liquidity risk and its management for Islamic banking, which includes the liquidity behavior of banking depositors and Islamic banks. In addition, the primary data through questionnaire survey was also assembled with the aim of knowing the actual practices and problems of managing liquidity risk. It was investigated from the perceptions of Islamic banking depositors and Islamic bankers to shed further lights on the liquidity risk issues, which were not captured in the time-series analysis. The empirical analyses conducted in this research.


Islamic Finance And Economic Development

Author by : Amr Mohamed El Tiby Ahmed
Languange : en
Publisher by : John Wiley & Sons
Format Available : PDF, ePub, Mobi
Total Read : 15
Total Download : 744
File Size : 54,7 Mb
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Description : A comprehensive guide to mitigating risk and fostering growthin the Islamic financial sector Islamic finance, like conventional finance is a business offinancial intermediation. Its distinctive features relate tothe requirement that it abides by Shari'a rules that promotefairness of contracts and prevention of exploitation, sharing ofrisks and rewards, prohibition of interests, and tangible economicpurpose. Islamic finance should not fund activities considered“haram” or sinful. In Islamic Finance and EconomicDevelopment: Risk, Regulation, and Corporate Governance,authors Amr Mohamed El Tiby and Wafik M. Grais expound how thesedistinctive features bear on the opportunities and challengesfacing the Islamic finance industry’sdevelopment, risk management, regulation and corporategovernance. An experienced banker with various Middle East bankinginstitutions, notably as former Vice President at UAE UnionNational Bank and Mashreq bank, Dr. El Tiby offers aninformed perspective on corporate finance from within theIslamic finance industry. With a long experience in internationaldevelopment and finance, notably as former Director at the WorldBank and Founder and Chairman of a Cairo-based FinancialAdvisors company, Dr. Grais brings global financial experience onthe topics of financial systems assessments, corporate governance,Islamic finance, and public policy. Covers the history and basics of Islamic finance, and providesinsight into current conditions and future landscape Explores regulatory framework, including opportunities andchallenges for the industry’s development andmainstreaming Presents an approach to developing a systemic Shari'agovernance framework to govern operations in the Islamic finance industry


Islamic Banking

Author by : Amr Mohamed El Tiby Ahmed
Languange : en
Publisher by : John Wiley & Sons
Format Available : PDF, ePub, Mobi
Total Read : 29
Total Download : 885
File Size : 41,9 Mb
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Description : A detailed look at the fast-growing field of Islamic finance and banking The guiding principle of Islamic finance has existed throughout Islamic history, yet modern Islamic banking has been around for a relatively short period of time. Author Amr Mohamed El Tiby is an expert in this field, and with this new book, he reveals how you can benefit from the use of Islamic banking strategies in your financial endeavors. Engaging and accessible, Islamic Banking shows the impact this approach has made on conventional banking since the 1950s, and why it's such a big player in the current market. It offers a unique look at various aspects of this field, including the salient features of Islamic banking that distinguishes it from non-Islamic banking, the development of the regulatory bodies and supervisory agencies that support the Islamic banking system, and much more. It also explores the nature of risk in Islamic banking and the issues of capital adequacy, corporate governance, transparency, and risk associated with Islamic banking. Discusses the history and development of Islamic finance Offers straightforward strategies for implementing Islamic finance into your business activities Sheds light on the effect of the global economic crisis on Islamic banks versus conventional banks Filled with in-depth insights and expert advice, this detailed analysis of Islamic finance will help you gain a firm understanding of how effective this proven approach can be.