Islamic banking and financial crisis : reputation, stability and risks

Examines the resilience of Islamic banking during the global financial crisis and lessons for risk management.
Do Islamic financial institutions perform better than their conventional counterparts during periods of financial stress? To what extent do systems for managing risk have to be adapted for Islamic financial institutions, given the unique characteristics of their assets and liabilities and the need for shari'ah compliance? These issues have come to prominence since the global financial crisis of 2007-8 and the subsequent recession, and are addressed in this book. The challenges for Islamic financial institutions are explored in an international post Basel II system where banks are required to have more capital and liquidity. Governance issues are also examined, given their influence on client and investor perceptions and their ultimate implications for institutional stability and sustainability.

Offers an in-depth assessment of how Islamic banks weathered the financial crisis and what lessons can be learnt. Asks whether Islamic banks are inherently more stable than conventional banks during periods of economic stress. Examines how Islamic banks manage risk, focusing on liquidity risk and the use of forward contracts to mitigate currency risk. Appraises the work of internal shari'ah audit units and the use of shari'ah reports to reduce non-compliance risks. Features case studies from the Gulf, Malaysia, the UK, Pakistan, Turkey and GCC countries.

Author Notes

Habib Ahmed is Sharjah Chair of Islamic Law and Finance, Mehmet Asutay is Reader in Middle Eastern and Islamic Political Economy and Finance, and Rodney Wilson is Emeritus Professor of Islamic Banking and Finance, all at the University of Durham.

Habib Ahmed and Mehmet Asutay and Rodney WilsonRafe Haneef and Edib SmoloRania Abdelfattah Salem and Ahmed Mohamed BadreldinMatthias VerbeetMohd Afandi Abu Bakar and Radiah Abdul Kader and Roza Hazli ZakariaRomzie Rosman and Abdul Rahim Abdul RahmanNoraini Mohd Ariffin and Salina Hj. KassimSherin Bind KunhibavaZurina Shafii and Supiah SallehAbdou Karim Diaw and Irawan FebiantoZulkifli HasanAbdulazeem Abozaid

List of Figures	p. vii
List of Tables	p. ix
List of Contributors	p. x
1 Reflecting on Islamic Banking and Financial Crisis: Risks, Reputation and Stability	p. 1
2 Reshaping the Islamic Finance Industry: Applying the Lessons Learned from the Global Financial Crisis	p. 21
3 Assessing the Resilience of Islamic Banks: An Empirical Analysis	p. 40
4 Stability of Islamic Banks: A Comparison of Conventional and Islamic Banks	p. 58
5 Islamic Banks' Financing Behaviour: A Pilot Study	p. 87
6 Risk Management Practices of Islamic Banks: International Evidence	p. 106
7 Liquidity Risk Management and Financial Performance of Islamic Banks: Empirical Evidence	p. 124
8 Risk Management and Islamic Forward Contracts	p. 136
9 Enhancing Governance, Accountability and Transparency in Islamic Financial Institutions: An Examination into Shari -c ah Internal Control Audit	p. 149
10 Shari -c ah Report: A Potential Tool for Shari -c ah Non-compliant Risk Management	p. 170
11 A Survey on Shari -c ah Governance Practices in Islamic Financial Institutions in Malaysia, GCC Countries and the UK	p. 200
12 Towards Genuine Shari -c ah Products with Lessons of the Financial Crisis	p. 222
Index	p. 234

Available:*

On Order

Summary

Summary

Author Notes

Table of Contents