November 2014
Intermediate to advanced
544 pages
16h 50m
English
book
The Art of RF (Riba-Free) Islamic Banking and Finance: Tools and Techniques for Community-Based Banking, 2nd Edition
by Yahia Abdul-Rahman
Content preview from The Art of RF (Riba-Free) Islamic Banking and Finance: Tools and Techniques for Community-Based Banking, 2nd Edition
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,
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 17 The RF Approach to Handling Troubled and Nonperforming Credits (Loans)
One of the unpleasant experiences in the banking and finance business is a nonperforming credit (loan), meaning that the customer does not make the monthly payments on time and eventually stops making these payments altogether for a number of reasons like his financial inability to do so. In this chapter, I will share with you case studies that will hopefully show the benefits of the RF culture, mentality, and approaches that have been employed while operating the LARIBA System since 1987 to resolve this challenge.
Nonperforming credits (loan) represent a significant drag on the profitability of the bank and the financial institution. These nonperforming credits may eventually result in reducing the bank capital, which may lead to the need to raise more capital or the closure of the bank.
The standard approach to nonperforming credits in a riba-based bank is to notify the customer and remind him of the covenants of the credit agreement and ending with transferring the loan to the legal department to take action. In most cases, the attorneys in the legal department start by filing a lawsuit to recover the assets using the collateral pledged against the credit facility or the other assets owned by the customers in order to recover as much as possible of that loan. Legal proceedings are necessary and useful but should be used as a last resort and in a wise way based on analyzing the reasons the customer ...
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.