Mapping the Risks and Risk Management Practices in Islamic Banking.

Cover -- Title Page -- Copyright -- Contents -- Foreword -- About the Authors -- Chapter 1 Introduction: Research Background and Motivation -- Systemic Importance of Islamic Banking and Finance -- Research Aims, Objectives and Questions -- Research Hypotheses -- Significance of the Study -- Overview of the Research Methodology -- Overview of the Research -- Chapter 2 Principles of Islamic Banking and Finance -- Historical Background of Islamic Banking and Finance -- Size of the Industry -- Principles of Islamic Banking and Finance -- Basic Islamic Financing Contracts -- Murabahah -- Mudarabah (Profit‐Sharing Agreement) -- Musharakah (Equity Participation) -- Ijarah and Ijarah wa‐Iqtinah -- Istisna'a -- Wakala -- Bai' Salam -- Other Islamic Financial Products -- Sukuk: A Step Toward Securitisation -- What is Sukuk? -- Types of Sukuk -- Developments in the Sukuk Market -- Islamic Banking Versus Conventional Banking -- Institutional Developments in Islamic Banking and Finance Industry -- Conclusion -- Chapter 3 Risk Management in Islamic Banks: A Theoretical Perspective -- Risk Management: Basic Concepts and Techniques -- What is Risk Management? -- History of Risk Management -- Systemic Importance of Risk Management -- Risk Management Versus Risk Measurement -- Risk Management Framework -- Risk Management and the Credit Crunch -- Classification of Risks -- Risks Common to Both Islamic and Conventional Banks -- Credit Risk -- Concentration Risk -- Market Risk -- Liquidity Risk -- Asset-Liability Management -- Operational Risk -- Further Risk Areas Specific to Islamic Banks -- Displaced Commercial Risk -- Shari'ah Non‐Compliance Risk -- Reputational Risk -- Accounting Standards -- Fiduciary Risk -- Corporate Governance Risk -- Regulatory and Tax Issues -- Legal Risk -- Short Track Record -- Risk Categories are Entangled.

Risk Management Issues in Sukuk -- Risk Mitigation in Islamic Banking -- Credit Derivatives -- Shari'ah and Islamic Derivatives -- Islamic Hedging Tools -- Further Risk Mitigation Provisions Inherent in Islamic Banking -- Surveying Risk Management Practices in Islamic Banks: A Review of Empirical Research -- Conclusion -- Note -- Chapter 4 Capital Adequacy for Islamic Banks: A Survey -- Significance of Capital in Banking -- Classification of Capital -- Steps in the Basel Accord -- The Basel I Accord -- The 1996 Amendment -- Issues with the Basel I Accord -- The Basel II Accord -- The Three Pillars of Basel II -- Criticism of and Amendments to the Basel II Accord -- Basel II and Islamic Banks -- Pillar 1 -- Determination of Risk Weights -- Pillar 2 -- Pillar 3 -- Basel III -- IFSB Principles on Capital Adequacy -- Capital Adequacy as a Tool for Risk Mitigation -- Conclusion -- Chapter 5 Islamic Banking and the Financial Crisis -- Understanding the Credit Crisis -- The Debt Bubble -- Derivatives and the Crisis: A Source of the Financial Crisis -- Searching for the Causes of the Crisis -- The Financial Crisis and the Need for an Alternative System -- The Financial Crisis and Islamic Finance and Banking as an Alternative Option -- Islamic Finance: No Subprime Exposures But Not Fully Immune -- Islamic Banks Affected by the Financial Crisis: No Man is an Island -- Failures in Islamic Finance: Sukuk Defaults -- Islamic Banking Emerging Stronger from the Crisis -- Deviations from the Foundational Shari'ah Principles: Evaluating the Operations of Islamic Finance -- Tawarruq: A Contentious Islamic Finance Instrument -- Lack of Appetite for Risk‐Sharing Assets -- Sukuk -- How to Achieve the Full Potential of Islamic Finance -- Conclusion -- Note -- Chapter 6 Research Framework and Methodology -- Research Questions and Objectives -- Research Hypotheses.

Research Methodology -- Research Design -- Research Strategy -- Research Method -- Research Method: Data Collection -- Research Method: Data Analysis -- Difficulties and Limitations -- Conclusion -- Chapter 7 Profiling Perspectives of Risk Dimensions in Islamic Finance: Descriptive Questionnaire Data Analysis -- Data Analysis and Results -- Characteristics of the Respondents -- Locating Risk Perception -- Perceptions of Risk Management and Mitigation -- Evaluating the Practice of Islamic Banking -- The Future of Islamic Banking -- Conclusion -- Chapter 8 Analysing Perceptions of Risk and Risk Management Dimensions and Issues: Inferential Statistical Analysis -- Risk Perception -- Risk Issues in Islamic Banks -- Capital Adequacy for Islamic Banks -- The Credit Crisis and Islamic Banks -- Risk Management and Reporting -- Risk Measurement -- Risk Mitigation -- Islamic Banking in Practice -- The Next Chapter in Islamic Banking -- Conclusion -- Chapter 9 Exploring Perceptions of Risk and Risk Management Practices in Islamic Banking: Interview Data Analysis -- Interview Analysis -- Forming the Main Interview Themes -- Interview Questions -- Results and Data Analysis -- Risk Perception in Islamic Banking -- Capital Adequacy for Islamic Banks -- Islamic Banking and the Global Credit Crisis -- Risk Mitigation in Islamic Banking -- The Dichotomy Between the Theory and Practice of Islamic Banking -- The Next Chapter in Islamic Banking -- Conclusion -- Chapter 10 Contextualising the Findings: An Interpretative Discussion -- Risk Perception in Islamic Banking -- Islamic Finance Contracts -- Intensity of Use of Different Islamic Finance Contracts -- Risk Perception in Different Islamic Finance Contracts -- Additional Risk Issues Facing Islamic Financial Institutions -- Capital Adequacy for Islamic Banks -- Islamic Banking and the Global Credit Crisis.

Risk Management and Reporting -- Risk Measurement -- Risk Mitigation -- Islamic Banking in Practice -- The Future of Islamic Banking -- Conclusion and Summary -- Chapter 11 Conclusion and Research Recommendations -- Summary of the Research -- Reflecting on the Research Findings -- Research Implications and Recommendations -- Policy Implications -- Theoretical and Empirical Implications: Significance of the Research -- Limitations of the Study -- Suggestions for Future Research -- Appendix 1 Questionnaire -- PhD. Research on 'Risk Management in Islamic Banking' -- Part One: General and Background Information -- Part Two: Risk Perception -- Part Three: Risk Management and Mitigation -- Part Four: Islamic Banking in Practice -- Part Five: The Next Chapter in Islamic Banking -- List of Acronyms -- Epilogue -- Bibliography -- Index -- EULA.

Description based on publisher supplied metadata and other sources.

Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.