Risk management for Islamic banks : recent developments from Asia and the Middle East / Imam Wahyudi [and three others].

Format:

Book

Author/Creator:

Wahyudi, Imam, 1981-

Wahyudi, Imam, author.

Series:

Wiley finance series.

Wiley Finance Series

Language:

English

Subjects (All):

Banks and banking--Religious aspects--Islam.

Banks and banking.

Banks and banking--Risk management--Islamic countries.

Physical Description:

1 online resource (425 p.)

Edition:

1st ed.

Place of Publication:

Singapore : Wiley, 2015.

Language Note:

English

Summary:

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.

Contents:

Intro

Advance Praise

Title Page

Copyright

Table of Contents

Dedication

Preface

Acknowledgments

About the Authors

List of Acronyms

Part One: Introduction

Chapter 1: Principles of the Islamic Financial System

Islamic Financial Contracts: The li-tabarru' Contract versus li-tijari Contract

Principles of Islamic Finance

Interest-Based Return versus Profit-Loss Sharing

Chapter 2: The Islamic Bank and Risk Management

Differences between an Islamic Bank and a Conventional Bank

History of the Islamic Bank

Global Islamic Banking Entities

Risk as an Integral Part of Islamic Bank

Stages in Risk Management

Risk and Return Trade-Off

Various Approaches on Risk Identification

The Importance of Risk Management for an Islamic Bank

Part Two: Risk Management Framework in Islamic Banking

Chapter 3: History of Risk Management in Islamic Banking

Basel I and Its History

Basel II and its History

Basel III and Its History

The AAOIFI and Its Role

The IFSB and Its Role

Chapter 4: The Risk Management Process in Islamic Banking

Risk Management Model in Islamic Banks

Risk Identification Process in Islamic Banking

Risk Matrix

Risk Mitigation Process

Risk Review Process

Infrastructure and Facilities

Calculation of Minimum Capital Requirements

Chapter 5: Financial Reporting and Analysis in Islamic Banking

The Importance of Financial Statements in Risk Analysis

Scope of Financial Statement in Islamic Banks

Basic Contracts and Instruments in the Islamic Bank

Structure of the Balance Sheet

Analysis of Income Statement

Persistence Analysis

Tools of Financial Statement Analysis

Core Business Activity in Islamic Banks

Off-Balance Sheet Activity in Islamic Banks

Part Three: Risk Management in Islamic Banking.

Chapter 6: Financing Risk in Islamic Banking

Urgency of Financing Risk Management in Islamic Banking

Characteristics of Islamic Financing Contracts

Financing Risk: Definitions and Its Scope

Role of Rahn and Kafalah

Defining Determinant Factors of Financing Risk

Urgency of the Independent Rating Agency

Rating and Financing Risk Provisions

Risk-Based Financing Limit

Concentration Risk in Financing Portfolio

Financing Portfolio Management

Measuring Financing Risk in the Islamic Bank

Chapter 7: Operational Risk in Islamic Banking

Urgency of Risk Awareness

Operational Risk Coverage in Islamic Banks

Identification of Operational Risk Factors

Operational Risk in Islamic Financial Contracts

Measurement of Islamic Operational Risk

Developing an Operational Risk Management System

Chapter 8: Syari'ah Compliance Risk

Basic Principles of Islamic Economics and Financial System

Syari'ah as Principle and Spirit in Business

Various Prohibitions in Mu'amalah

Why Should Islamic Banking Comply with Islamic Principles?

Integrating Syari'ah Compliance in the Islamic Bank

Evolution of Syari'ah Governance in Islamic Financial System

Syari'ah Advisory Board and Syari'ah Compliance Audit as a Framework

Identification Process of Syari'ah Compliance Risk

Risk Management and Mitigation of Syari'ah Compliance Risk

Models of Syari'ah Governance in Several Countries

Chapter 9: Strategic Risk

Definition and Scope of Strategic Risk in Islamic Banking

Determinants of Strategic Risk and Its Mitigation

Issues Related to Strategic Risk

Chapter 10: Investment Risk in Islamic Banking

Syirkah as a Distinct Trait of Islamic Banks

Basic Concept of Investment Risk

Forms of Risk and Their Mitigation

Regulations on Profit Distribution Management.

Chapter 11: Market Risk in Islamic Banking

Urgency of Market Risk

Scope of Market Risk in Islamic Banks

Identification of Market Risk Profile

Market Risk Measurement in Islamic Banks

Market Risk Mitigations in Islamic Banking

Implementation of Market Risk Mitigation

Chapter 12: Liquidity Risk in Islamic Banking

Urgency of Liquidity Risk

Credit Multiplier, Financial Stability and Liquidity Crises

Definition and Coverage of Liquidity Risk

Islamic Bank's Assets and Liabilities

Liquidity Risk Management in Islamic Banks

Part Four: Future Prospects and Challenges in Islamic Banking

Chapter 13: Development of the Islamic Financial Market

Islamic Capital Market

Derivative Islamic Market

Regulation and Supervisory in Islamic Financial Market

Institutional-Based Development Framework

Stability in Islamic Financial System: Lesson from Global Financial Risk

Chapter 14: Development of a Pricing Model in Islamic Banking

Fundamentals in Islamic Pricing Model

Time Value of Money in Pricing Model

Current Islamic Pricing Model

Urgency of Pricing Mechanism in Islamic Banks

Chapter 15: Pathways of Risk Management in Islamic Banks

Islamic Banks as Real Implementation of Risk Management

Challenges of Islamic Banking in the World

Blueprint for Islamic Banking Regulation

Prospects and Challenges of Islamic Banking Development

Strategic Issues in the Implementation of Islamic Risk Management

Chapter 16: Future Agenda

Landscape of Integrated Islamic Risk Management

Synergy and Integration among Islamic Financial Institutions

Competency and Competitiveness of Islamic Banking

Regulatory Agenda in the Future

Anticipating the Potential Systemic Risks

Part Five: Conclusion

Chapter 17: Summary and Conclusion

Glossary

Bibliography

Index.

End User License Agreement.

Notes:

"Islamic Finance"--Cover.

Includes bibliographical references and index.

Description based on print version record.

ISBN:

9781118734452

1118734459

9781118809211

1118809211

9781118734438

1118734432

OCLC:

923139718