June 2013
Intermediate to advanced
550 pages
16h 12m
English
book
Islamic Finance: The New Regulatory Challenge, 2nd Edition
by Rifaat Ahmed Abdel Karim, Simon Archer
Content preview from Islamic Finance: The New Regulatory Challenge, 2nd EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Chapter 6
Inherent Risk: Credit and Market Risks
1. INTRODUCTION
Islamic finance has grown significantly since its rise to prominence in the last decade, with a growing number of countries adopting Islamic finance as the emblem of their financial services sector. The prominence received a further boost with the global financial crisis, when doubts were cast on the role of the conventional financial system in financial intermediation insofar as it was evident that the conventional financial system increasingly was decoupled from the “real” economy.
Nonetheless, while the interest in Islamic finance has grown, the management of the risks inherent in the operation of Islamic financial institutions (IFIs), particularly relating to specificities of Shari’ah-compliant products and services, is still relatively new and developing. Although some progress has been made through the establishment of Islamic finance risk and governance frameworks, advances in the area of risk management for Islamic finance have not kept pace relative to the growth of the industry.
The chapter explores the risk specificities of Shari’ah-compliant products and services, particularly the credit and market risks of these products and services.
2. DISTINCTIVE RISKS
IFIs are faced with risks that are distinct from those of their conventional counterparts. The tenets of Islamic finance are based on the conformity to Shari’ah law, which is the juristic code of Islam based on the Qur’an and the
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.