"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"-- "Although risk management in Islamic banking is one of the major as well as controversial issues of the sector, it is still an under-researched area of study. A lot of uncertainties still exist in risk management in Islamic banking, for which the answers are not yet necessarily clear, but which will play a part in shaping the industry's future. Therefore, the study of risk management issues of the Islamic banking industry is an important but complex area. This book, hence, explores and analyses risk management practices in the Islamic banking industry through the perceptions of participants who were drawn from the banking and finance industry. It maps out the opinions and attitudes towards risk and locates the practices of the industry related to risk management and provides an up-to-date overview of current market practices, issues, and trends in risk management for Islamic banks. It focuses on practical applications and discusses a wide range of unique risks facing Islamic banks from the perspective of different range of practitioners"-- Read more... Abstract: "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"-- "Although risk management in Islamic banking is one of the major as well as controversial issues of the sector, it is still an under-researched area of study. A lot of uncertainties still exist in risk management in Islamic banking, for which the answers are not yet necessarily clear, but which will play a part in shaping the industry's future. Therefore, the study of risk management issues of the Islamic banking industry is an important but complex area. This book, hence, explores and analyses risk management practices in the Islamic banking industry through the perceptions of participants who were drawn from the banking and finance industry. It maps out the opinions and attitudes towards risk and locates the practices of the industry related to risk management and provides an up-to-date overview of current market practices, issues, and trends in risk management for Islamic banks. It focuses on practical applications and discusses a wide range of unique risks facing Islamic banks from the perspective of different range of practitioners" This studyis a welcome addition to the literature on risk management in Islamic banking.The financial institutions survived the global financial crisis of 2007–2009relatively unscathed and the more benign financial environment since haswitnessed the stabilisation of Islamic finance. However, its market penetrationhas remained disappointing during the last decade – a likely explanation forthis being the failure of the industry to get the message across to potentialclients of the significance of risk-sharing for Islamic finance. There remainsa widespread perception that Islamic banking is very similar to itsconventional counterpart, which discourages clients from switching theiraccounts and applying for Islamic financing.Financialregulators, with some notable exceptions such as Bank Negara in Malaysia, oftenhave the same requirements for all banks, including Islamic banks. This,regulators argue, creates a level playing field; but it makes no allowance forthe inherent differences of Islamic banks. Regulators must take some of the blamefor Islamic banks not distinguishing themselves as there is a disincentive tointroduce more innovative financial products that might thrive more in a more liberalregulatory environment. At present Islamic banks are subject to the same requirementsfor managing risk, whereas light touch regulation of the sector could facilitateits development.Dr Eid andProfessor Asutay examine the different types of risks banks face includingcredit risk, concentration risk, market risk, liquidity risk and operational risk.Asset–liability management (ALM) and displaced commercial risk are also coveredas well as Shari’ah risk. This book therefore provides a very comprehensive approachto risk exposure and how it can be managed. The core of the research was aquestionnaire survey completed by participants from 18 countries. The data fromthe survey was analysed using non-parametric statistical techniques includingfactor and multivariate analysis. In addition, semi-structured interviews wereheld with 37 leading Islamic bank professionals; of which 33 comprised the finalsample. This provided greater depth to the study and gives the reader a better understandingof the underlying issues.The bookserves as an essential guide to risk management in Islamic banking and is a“must read” for researchers working in this area, including university facultyand postgraduate students of Islamic finance. Although primarily an academic study,the book should proveworthwhile reading for financial regulators and professionalbankers working in the Islamic finance industry. The findings from the surveysare clearly explained and there is a useful chapter that provides aninterpretative discussion. Overall the work is an insightful and useful pieceof research.
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.
