scholarly journals Frontiers and Mechanics of Risk Management in Islamic Banking System - Policy Measures for Effective Risk Mitigation

2017 ◽  
Author(s):  
Abubakar Yusuf Sanyinna ◽  
Hydzulkifli Hashim Omar
Keyword(s):  
Risk Management ◽  
Risk Mitigation ◽  
Banking System ◽  
Islamic Banking ◽  
Policy Measures

scholarly journals Risk management practices and attitude of Pakistani Islamic banking system employees

2013 ◽  
Vol 7 (33) ◽  
pp. 3202-3211 ◽  
Author(s):  
Azeem Khattak Naveed ◽  
Khashif Ur Rehman ◽  
Ullah Wasim ◽  
Ullah Majeed
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Banking System ◽  
Islamic Banking

Determinants of Banking Crises in ASEAN Countries

2018 ◽  
Vol 09 (03) ◽  
pp. 1850009
Author(s):  
Norfaizah Othman ◽  
Mariani Abdul-Majid ◽  
Aisyah Abdul-Rahman
Keyword(s):  
Financial Crises ◽  
Economic Freedom ◽  
Risk Mitigation ◽  
Banking System ◽  
Warning System ◽  
Banking Crises ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Mitigation Techniques ◽  
Asean Countries

This paper attempts to estimate the determinants of crises on Islamic banking system during financial crises using early warning system (EWS) with particular focus on the element of profit–loss sharing. Profit–loss sharing has significant impact in reducing crisis probability experienced by the Islamic banking system. This suggests that profit–loss sharing may be considered as one of the risk mitigation techniques for bank to remain resilient during the crises. The results further show that full-fledged Islamic banks have higher chances of experiencing crises relative to the Islamic subsidiaries banks. In addition, economic freedom and overvaluation in the currency are more likely exposed to banks to the crises.

scholarly journals Accounting Treatment for Unrestricted Investment Deposits and its Implication to Islamic Financial Institution

2015 ◽  
Vol 1 (2) ◽  
pp. 119
Author(s):  
M. Ghafur Ghafur Wibowo ◽  
Joko Setyono ◽  
Kurnia Rahman Abadi
Keyword(s):  
Risk Management ◽  
Capital Structure ◽  
Default Risk ◽  
Financial Institution ◽  
Banking System ◽  
Capital Adequacy ◽  
Islamic Banking ◽  
Bank Capital ◽  
Profit Distribution ◽  
Capital Adequacy Ratio

The objective of this paper is to analyze the accounting treatment for mudharabah especially for account unrestricted investment (mudharabah mutlaqoh) in practical side which has been appling in the current Islamic banking system. This paper also concerns on the impliaction of different accounting treatment to the islamic financial institution. This study finds that there two different accounting treatment for Unrestricted Mudharabah currently practised by Islamic banking, namely as liability and as different account between equity and liability. The two differents of accounting treatment for mudharabah investment account (UIAHS) will have some implication to Islamic banking, namely: Profit distribution, Capital Adequacy Ratio (CAR), Risk management and Capital structure. Based on IFSB Capital Adequacy Standard, in accounting treatment AAOFI standard, since the mudharabah Investment account has portion between liability and equity, thus the alpha maybe equal to 0.5. However, in case of Malaysia which is more based on IFRS which is treated this account as a liability, alpha is close to one (1). The different CAR also will have implication on the risk management that should be conducted by Islamic bank. Capital structure policy is another aspect that will be influenced by the different of accounting treatment of UIAHS. Hence, the accounting treatment of UIAHS on whether it will be treated as equity or liability will has direct effect on capital structure policy and some other aspect such as default risk, bankruptcy cost etc.

scholarly journals Liquidity risk and regulation in the Organization of the Islamic Cooperation (OIC) banking industry

2021 ◽  
Vol 17 (2) ◽  
pp. 29-62
Author(s):  
Syajarul Imna Mohd Amin ◽  
Aisyah Abdul-Rahman ◽  
Nurhafiza Abdul Kader Malim
Keyword(s):  
Risk Management ◽  
Generalized Method Of Moments ◽  
Banking System ◽  
Liquidity Risk ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Islamic Banking ◽  
Private Monitoring ◽  
Conventional Banks ◽  
The Impact

The recurring crises have evidenced poor liquidity risk management and ineffective regulation in banking. Consequently, banking regulations have undergone continuous reforms to bolster stability in the banking system. Nonetheless, theoretical and empirical evidence provide conflicting results that warrant comprehensive research, particularly for emerging Islamic banking. This study examines the role of banking regulation on the liquidity risk of 245 conventional banks and 68 Islamic banks from selected 14 Organization of the Islamic Cooperation (OIC) from 2000 to 2017 utilising the dynamic panel GMM (generalized method of moments) technique. We measure liquidity risk using the Net Stable Funding Ratio (NSFR) and the total financing-to-total deposits and short-term funding (LDEP). Meanwhile, the regulatory measures are asset restriction (AR), private monitoring (PM), supervisory power (SP) and capital requirements (CR). The findings suggest that regulation has a limited impact on bank liquidity risk. The CR supports the value creation of regulation through the reduction in banks’ liquidity risks, while PM and SP are agency costs of regulation that lead to higher liquidity risks. The impact of CR is lower on liquidity risk in Islamic banking than conventional ones, probably due to limited Islamic liquidity risk management facilities. Thus, regulators should strengthen Islamic liquidity risk instruments and markets to facilitate Islamic banking growth.

Risk Management on Information Security in ABC Company

2017 ◽  
Vol 4 (1) ◽  
pp. 62-66
Author(s):  
Luyen Ha Nam
Keyword(s):  
Risk Management ◽  
Information Security ◽  
Data Management ◽  
Management System ◽  
Risk Mitigation ◽  
Data Management System ◽  
Data Centre ◽  
Long Time ◽  
Mitigation Action ◽  
Better Than

From long, long time ago until nowadays information still takes a serious position for all aspect of life, fromindividual to organization. In ABC company information is somewhat very sensitive, very important. But how wekeep our information safe, well we have many ways to do that: in hard drive, removable disc etc. with otherorganizations they even have data centre to save their information. The objective of information security is to keep information safe from unwanted access. We applied Risk Mitigation Action framework on our data management system and after several months we have a result far better than before we use it: information more secure, quickly detect incidents, improve internal and external collaboration etc.

Arah Kebijakan Pengawasan terhadap Perbankan Syariah dalam Sistem Perbankan Nasional di Indonesia

2020 ◽  
Vol 3 (1) ◽  
pp. 41-52
Author(s):  
Andrew Shandy Utama
Keyword(s):  
Central Bank ◽  
Financial Services ◽  
Banking System ◽  
Islamic Banking ◽  
Legal Research ◽  
Islamic Bank ◽  
Independent Direction ◽  
National Banking System

This research aims to explain the direction of policy regarding supervision of Islamic banking in the banking system in Indonesia. The method used in this research is normative legal research using the statutory approach. The results of this research explain that the policy regarding supervision of Islamic banking in the national banking system in Indonesia is headed toward an independent direction. In Law Number 7 of 1992 and Law Number 10 of 1998, it is stated that supervision of Islamic banking is done by Bank Indonesia as the central bank. Based on Law Number 21 of 2008, supervision of Islamic banking is strengthened by not only being supervised by Bank Indonesia, but also by the National Sharia Council of the Majelis Ulama Indonesia by placing Sharia Supervisory Councils in each Islamic bank. After the ratification of Law Number 21 of 2011, supervision of Islamic banking moved from Bank Indonesia to an independent institution called the Financial Services Authority.

Issues on Interbank Commodity Murabaha (CM) for Liquidity Management in Malaysia

2020 ◽  
Vol 8 (2) ◽  
pp. 9
Author(s):  
Mohamad Zabidi Bin Ahmad ◽  
Rosylin Mohd. Yusof ◽  
Ahmad Rizal Mazlan
Keyword(s):  
Risk Mitigation ◽  
Banking System ◽  
Islamic Banks ◽  
Liquidity Management ◽  
Standard Guideline ◽  
Growth Area ◽  
Islamic Financial Institutions ◽  
Enhance Efficiency ◽  
Analyze Structure ◽  
Operational Issues

Purpose: The objective of this research is to highlight issues and review the Interbank Commodity Murabahah (CM) practice as a tool of liquidity requirement from both the Shariah and industry’s operational perspectives. Accordingly, this study seeks to analyze structure and mechanism of CM as instrument to meet the liquidity need of the Islamic financial institutions and provides an opportunity for investments. In doing so, the paper seeks to review issues related to Shariah and operations in Islamic banking. Design/methodology/approach: By conducting interview with Treasurers, Shariah Scholars and funding dealers of Islamic banks in Malaysia, the study evaluates reassessment on CM practices and operational issues in relation risk and compliance. The study focuses on Islamic Treasury Division of Islamic banks in Malaysia. Findings: The findings of the study suggest that the two most significant issues in Islamic liquidity management of Islamic banks in Malaysia are i) resembling interest ii) nature of tradability iii) structure of CM iv) the timing the transaction to be completed and v) the real brokerage cost involved in adopting the CM transactions. Research limitations/implications: The research proposes a risk mitigation and enhanced Shariah compliance framework such as strait through processing (STP) and commodity broker’s standard guideline for Islamic banks to adopt CM practices. Practical implications: This study provides direction and guidance to the Islamic Commercial Banks, Commodity Brokers and regulator (BNM) involved in the banking system to reflect upon the importance to understand the issues and limitation of CM. By highlighting the importance of efficiency in terms of time and cost saving together with Shariah issues, Islamic banks can design policies to enhance efficiency in order to either decide to maintain the adoption of CMP or to consider the proposed alternative. Social implications:Understanding the Shariah compliance and operational issues will enhance the integrity of Islamic banks which is consistent with Key Economic Growth Area of making Malaysia as International Islamic Financial Hub 2.0.

Islamic Banking in Nigeria: Issues and Prospects

2016 ◽  
Vol 4 (2) ◽  
pp. 34 ◽  
Author(s):  
Nuruddeen Abba Abdullahi
Keyword(s):  
Public Awareness ◽  
Banking System ◽  
Islamic Banking ◽  
Secondary Sources ◽  
Banking And Finance ◽  
Adequate Knowledge ◽  
Islamic Religion ◽  
Developmental Opportunities ◽  
The Subject ◽  
Nigerian Banking

The Nigerian banking reform precipitated the adoption of Islamic banking and finance in 2009 as additional door to banking mechanism in the country. However, the implementation of the Islamic banking or non-interest banking has generated a lot of debate, specifically because its foundations are based on Islamic religion. This paper briefly reviews the concept, the challenges and prospects of Islamic banking in Nigeria. The paper relies on the secondary sources by reviewing and analysing various works on the subject. A reflection on the size of its population and the developmental opportunities indicates that Nigeria has the prospect of becoming the hub centre of Islamic finance in Africa. Yet there are numerous challenges to the development of the Islamic banking system in the country, including misrepresentation of the system, lack of linkages and investment institutions, lack of adequate knowledge, as well as shroud business ethos and corruption, which is endemic in the country. The paper recommends the need for greater public awareness about Islamic banking and creation of enabling environment (i.e. the legal, accounting and taxation systems) for the working of Islamic financial system.   

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