Impact of Islamic Securitization (Sukuk) on Islamic Banks Liquidity Risk in Light of Basel III Requirements

CHAPTER 1 Supervision of Islamic Banks : The Regulatory Challenge — Basel II and Basel III

Risk Management Framework in Islamic Banking: Basel II and III, Challenges and Implications in Islamic Banking

The time to fix the roof is when the sun is shining risk management has not been uppermost on the Islamic banking sector’s agenda in recent years. It is crucial for Islamic banks (IBs) to have comprehensive risk management framework as there is growing realization among IBs that sustainable growth critically depends on the development of a comprehensive risk management framework. Islamic b...

Liquidity Transformation Factors of Islamic Banks: An Empirical Analysis

Islamic banks face restrictions in refinancing due to the guidelines of the Shari ́ah prohibiting financial contracts and transactions based on interest, gambling and speculation as same as due to the lack of liquidity sources such as an interbank market, a lender of last resort or an asset market. This is the first study with empirical cross-country results focusing on liquidity transformation ...

Deficiency Risk in Islamic and Conventional Banks

In this article, we have elaborated a study over the nature of financial intermediation in Islamic banks by comparison to those of conventional ones. We have found a striking difference between two kinds of intermediation. We tried, from another side, to study the relationship between the capital level and deficiency risk relying on econometric model, and we have obtained a positive and signifi...

Failure Risk in Islamic and Conventional Banks

This study compares the hazard of failure in Islamic and conventional commercial banks using survival models. The sample consists of 421 banks from 20 Middle and Far Eastern countries observed during the 1995 to 2010 period. The conditioning variables are of both bank-level and country-level type. The analysis suggests that Islamic banks have lower failure risk and are less interconnected which...