Mapping the Risks and Risk Management Practices in Islamic Banking

Mapping the Risks and Risk Management Practices in Islamic Banking

by Wael Kamal Eid, Mehmet Asutay
Released July 2019
Publisher(s): Wiley
ISBN: 9781119077817

Read it now on the O’Reilly learning platform with a 10-day free trial.

O’Reilly members get unlimited access to books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial

Book 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.

Table of contents

  1. Cover
  2. Foreword
  3. About the Authors
  4. CHAPTER 1: Introduction
    1. SYSTEMIC IMPORTANCE OF ISLAMIC BANKING AND FINANCE
    2. RESEARCH AIMS, OBJECTIVES AND QUESTIONS
    3. RESEARCH HYPOTHESES
    4. SIGNIFICANCE OF THE STUDY
    5. OVERVIEW OF THE RESEARCH METHODOLOGY
    6. OVERVIEW OF THE RESEARCH
  5. CHAPTER 2: Principles of Islamic Banking and Finance
    1. HISTORICAL BACKGROUND OF ISLAMIC BANKING AND FINANCE
    2. SIZE OF THE INDUSTRY
    3. PRINCIPLES OF ISLAMIC BANKING AND FINANCE
    4. BASIC ISLAMIC FINANCING CONTRACTS
    5. SUKUK: A STEP TOWARD SECURITISATION
    6. ISLAMIC BANKING VERSUS CONVENTIONAL BANKING
    7. INSTITUTIONAL DEVELOPMENTS IN ISLAMIC BANKING AND FINANCE INDUSTRY
    8. CONCLUSION
  6. CHAPTER 3: Risk Management in Islamic Banks
    1. RISK MANAGEMENT: BASIC CONCEPTS AND TECHNIQUES
    2. RISK MANAGEMENT AND THE CREDIT CRUNCH
    3. CLASSIFICATION OF RISKS
    4. RISKS COMMON TO BOTH ISLAMIC AND CONVENTIONAL BANKS
    5. FURTHER RISK AREAS SPECIFIC TO ISLAMIC BANKS
    6. RISK CATEGORIES ARE ENTANGLED
    7. RISK MANAGEMENT ISSUES IN SUKUK
    8. RISK MITIGATION IN ISLAMIC BANKING
    9. SURVEYING RISK MANAGEMENT PRACTICES IN ISLAMIC BANKS: A REVIEW OF EMPIRICAL RESEARCH
    10. CONCLUSION
    11. NOTE
  7. CHAPTER 4: Capital Adequacy for Islamic Banks
    1. SIGNIFICANCE OF CAPITAL IN BANKING
    2. CLASSIFICATION OF CAPITAL
    3. STEPS IN THE BASEL ACCORD
    4. BASEL II AND ISLAMIC BANKS
    5. BASEL III
    6. IFSB PRINCIPLES ON CAPITAL ADEQUACY
    7. CAPITAL ADEQUACY AS A TOOL FOR RISK MITIGATION
    8. CONCLUSION
  8. CHAPTER 5: Islamic Banking and the Financial Crisis
    1. UNDERSTANDING THE CREDIT CRISIS
    2. THE FINANCIAL CRISIS AND THE NEED FOR AN ALTERNATIVE SYSTEM
    3. THE FINANCIAL CRISIS AND ISLAMIC FINANCE AND BANKING AS AN ALTERNATIVE OPTION
    4. DEVIATIONS FROM THE FOUNDATIONAL SHARI'AH PRINCIPLES: EVALUATING THE OPERATIONS OF ISLAMIC FINANCE
    5. HOW TO ACHIEVE THE FULL POTENTIAL OF ISLAMIC FINANCE
    6. CONCLUSION
    7. NOTE
  9. CHAPTER 6: Research Framework and Methodology
    1. RESEARCH QUESTIONS AND OBJECTIVES
    2. RESEARCH HYPOTHESES
    3. RESEARCH METHODOLOGY
    4. RESEARCH DESIGN
    5. RESEARCH STRATEGY
    6. RESEARCH METHOD
    7. DIFFICULTIES AND LIMITATIONS
    8. CONCLUSION
  10. CHAPTER 7: Profiling Perspectives of Risk Dimensions in Islamic Finance
    1. DATA ANALYSIS AND RESULTS
    2. CONCLUSION
  11. CHAPTER 8: Analysing Perceptions of Risk and Risk Management Dimensions and Issues
    1. RISK PERCEPTION
    2. RISK MANAGEMENT AND REPORTING
    3. RISK MEASUREMENT
    4. RISK MITIGATION
    5. ISLAMIC BANKING IN PRACTICE
    6. THE NEXT CHAPTER IN ISLAMIC BANKING
    7. CONCLUSION
  12. CHAPTER 9: Exploring Perceptions of Risk and Risk Management Practices in Islamic Banking
    1. INTERVIEW ANALYSIS
    2. FORMING THE MAIN INTERVIEW THEMES
    3. INTERVIEW QUESTIONS
    4. RESULTS AND DATA ANALYSIS
    5. CONCLUSION
  13. CHAPTER 10: Contextualising the Findings
    1. RISK PERCEPTION IN ISLAMIC BANKING
    2. ISLAMIC FINANCE CONTRACTS
    3. ADDITIONAL RISK ISSUES FACING ISLAMIC FINANCIAL INSTITUTIONS
    4. CAPITAL ADEQUACY FOR ISLAMIC BANKS
    5. ISLAMIC BANKING AND THE GLOBAL CREDIT CRISIS
    6. RISK MANAGEMENT AND REPORTING
    7. RISK MEASUREMENT
    8. RISK MITIGATION
    9. ISLAMIC BANKING IN PRACTICE
    10. THE FUTURE OF ISLAMIC BANKING
    11. CONCLUSION AND SUMMARY
  14. CHAPTER 11: Conclusion and Research Recommendations
    1. SUMMARY OF THE RESEARCH
    2. REFLECTING ON THE RESEARCH FINDINGS
    3. RESEARCH IMPLICATIONS AND RECOMMENDATIONS
    4. LIMITATIONS OF THE STUDY
    5. SUGGESTIONS FOR FUTURE RESEARCH
  15. APPENDIX 1: Questionnaire
    1. PHD. RESEARCH ON ‘RISK MANAGEMENT IN ISLAMIC BANKING’
  16. List of Acronyms
  17. Epilogue
  18. Bibliography
  19. Index
  20. End User License Agreement

Product information

  • Title: Mapping the Risks and Risk Management Practices in Islamic Banking
  • Author(s): Wael Kamal Eid, Mehmet Asutay
  • Release date: July 2019
  • Publisher(s): Wiley
  • ISBN: 9781119077817