Professional Documents
Culture Documents
Management
Presented by
Houda Cherrak
Bouchra Touzani
Outline
Brief Overview of Islamic Banking System
Types of Islamic Financial Instruments.
Common risks faced by Conventional and Islamic
Financial Institutions.
Risk Identification and Management of Shariah
Compliant Banking Products.
General View of Islamic Financial Indices.
Brief Overview of Islamic Banking System
Murabaha is the sale of a good to the client at a higher price than the spot
price. In the Islamic finance world, the margin that is done is justified by
the fact that the seller takes the risk of a deferred payment.
Credit risk
average in the
industry: 2.7
Market risk
Average market
risk in the
industry: 3.05
Liquidity risk
Average
liquidity risk in
the industry:
2.8
Operational risk
Average
operational risk
average in the
industry: 2.9
Severity of risks
Shariah Compliant Risk Management
This standards focus mainly on the management systems and not about
environmental pollution prevention. Actually, it implies outlining clear
environmental goals and generating regular performance reports.
Examples of indices:
Dow Jones Islamic Indexes
Dow Jones Citigroup
S&P Shariah Indexes
FTSE
HSBC
Subprime Crisis and Islamic Finance
Two other Islamic funds have performed better than the S&P
500.