Risk Analysis for Islamic Banks

World Bank Publications, 2008 - Počet stran: 309

Islamic finance is emerging as a rapidly growing part of the financial sector in the Islamic world and is not restricted to Islamic countries, but is spreading wherever there is a sizable Muslim community. According to some estimates, more than 250 financial institutions in over 45 countries practice some form of Islamic finance, and the industry has been growing at a rate of more than 15 percent annually for the past several years. The market's current annual turnover is estimated to be $70 billion, compared with a mere $5 billion in 1985, and is projected to hit the $100 billion mark by the turn of the century. Since the emergence of Islamic banks in the early 1970s, considerable research has been conducted, mainly focusing on the viability, design and operations of a deposit-accepting financial institution, which operates primarily on the basis of profit and loss partnerships rather than interest.
This publication provides a comprehensive overview of topics related to the assessment, analysis, and management of various types of risks in the field of Islamic banking. It is an attempt to provide a high-level framework (aimed at non-specialist executives) attuned to the current realities of changing economies and Islamic financial markets. This approach emphasizes the accountability of key players in the corporate governance process in relation to the management of different dimensions of Islamic financial risk.

Prohlédnout si tuto knihu »

Vybrané stránky

Obsah

Box 11 Principles of an Islamic Financial System	7

Table 11 Development of Islamic Economics and Finance in Modern History	13

Table 21 Theoretical Balance Sheet of an Islamic Bank Based on Maturity Profile and Functionality	19

Table 22 Sources and Application of Funds	21

Figure 21 Contracts and Instruments	22

Table 23 Size of Islamic Financial Institutions in 1999	26

Figure 31 Partnership in Corporate Governance of Banks	33

Box 31 Accountability of Bank Management	38

Table 86 YearonYear Fluctuations in Growth of Portfolio Components	140

Figure 84 YearonYear Fluctuations in Growth of Portfolio Components	141

Table 91 Theoretical Balance Sheet of an Islamic Bank Based on Functionality	147

Table 92 Maturity Profile of Assets and Liabilities	151

Figure 91 Liquidity Mismatches Derived from Maturity Profile of Assets and Liabilities	153

Box 91 IFSB Principles of Liquidity Risk	154

Box 92 IFSB Principle of Market Risk	156

Box 93 IFSB Principles of RateofReturn Risk	159

Box 32 Fit and Proper Standards for Bank Management	39

Box 33 The Responsibilities of Management	40

Box 34 The Responsibilities of Audit Committees and Internal Auditors	44

Box 35 The Responsibilities of External Auditors	45

Table 41 Importance of Key Stakeholders in the Islamic Finance Industry	52

Risk Management	63

Table 51 Banking Risk Exposures	65

Table 52 Contractual Role and Risk in Islamic Banking	69

Table 53 Stages of the Analytical Review Process	76

Figure 51 Composition of an Islamic Banks Assets by Periods	80

Figure 52 Trends in Asset Growth by Period	81

Table 54 BalanceSheet Composition of Assets	82

Table 55 BalanceSheet Growth Year on Year	85

Figure 61 Composition of an Islamic Banks Balance Sheet	90

Figure 62 Structure of an Islamic Banks Assets	91

Figure 63 Structural Change and Asset Growth 200106	92

Table 62 Islamic Financing and Investing Assets Grass	94

Table 63 Percentage Composition of the Balance Sheet 200106	100

Figure 65 Hypothetical Growth of Assets	101

Table 71 Composition of the Income Statement 200506	104

Table 72 Percentage Composition of Islamic Products Revenues over Time	110

Figure 71 Asset Structure versus Income Structure	111

Figure 72 Relationship of Income to Expenses 200106	112

Table 73 Profitability Ratios 200106	115

Figure 73 Select Profitability Ratios 200106	116

Return on Assets ROA and on Equity ROE Adjusted for the Cost of Capital	118

Box 81 IFSB Principles of Credit Risk	122

Figure 81 Exposure to 20 Largest Exposures Hypothetical Example	123

Table 81 RelatedParty Lending	124

Who Are We Investing In?	128

Who Are We Investing In?	129

For How Long Are We Investing?	130

Box 82 Content of an Investment and Financing Asset Review File	131

Box 83 Signs of a Distorted Credit Culture	134

Box 84 Asset Classification Rules	135

Table 85 Recommended Provisions	137

Box 94 IFSB Principles of Equity Investment Risk	160

Figure 93 Exposure to Marketable Securities 200106	164

Table 94 Simplistic Calculation of Net Effective Open Positions Assuming Uniform Instruments in Every Market	166

Figure 94 Simplistic Impact on Equity of Marking to Market	168

Governance and Regulation	183

Figure 111 Corporate Governance Structures in Institutions Offering Islamic and Conventional Financial Services	186

Table 111 Presence of a Centralized Shariah Supervisory Board or Islamic Rating Agency in Select Countries	188

Table 113 External Shariah Boards in Select Countries	192

Box 111 IFSB Principles of Corporate Governance for Islamic Banks	198

Box 121 Criteria for Evaluating Accounting Standards	205

Figure 121 Transparency in Financial Statements Achieved through Compliance with the IFRS Framework	207

Box 122 Survey on Public Disclosure of Banks	212

Box 123 AAOIFI Standards	213

Table 121 Disclosure Practices of Islamic Banks	215

Table 131 Classification of Capital in the Basel Accords	223

Box 131 IFSB Principles for Minimum Capital Adequacy Requirements CAR	226

Box 132 IFSB Standard Formula for CAR	227

Basel II versus IFSB	228

Figure 131 Framework for Measuring Credit Risk Weights	229

Figure 132 Framework for Measuring Market Risk Weights	230

Box 134 Computation of CAR for an Islamic Bank	231

Figure 133 Components of Bank Capital	234

Figure 134 Risk Profile of Assets	235

Table 135 Trend Analysis of Capital Adequacy Ratios	237

Figure 135 Capital Tiers and Compliance	238

Figure 141 The Context of Bank Supervision	242

Table 141 Stages of the Analytical Review Process	243

Table 142 Adapting the External Audit to Specific Circumstances and Needs	256

Future Challenges	257

References	276

A Glossary of Islamic Terms	281

B IFSB Standard on Risk Management	285

C Proposed Outline for Bank Analytical Reports	293

Index	297

Autorská práva

Další vydání - Zobrazit všechny

Risk Analysis for Islamic Banks
Hennie van Greuning,Zamir Iqbal
Zobrazení fragmentů - 2008

Běžně se vyskytující výrazy a sousloví

AAOIFI accounting standards analysis assessment asset-liability asset-liability management audit balance sheet bank’s banking system Basel II capital adequacy cash central bank client collateral compliance contract conventional banks corporate governance countries credit risk currency depositors deposits disclosure economic ensure environment equity evaluate external auditors financial instruments financial intermediaries financial risk financial statements financing and investing framework function funds growth IFSB ijarah income statement International murabahat investing assets investment account holders investors Islamic banks Islamic Development Bank Islamic financial institutions Islamic Financial Services issues istisnah liquidity risk loans loss market risk maturity measurement ment monitoring mudarabah musharakah off-balance-sheet operational risk percent performance policies practice principles profit ratios regulators regulatory reporting risk exposures risk management risk profile risk weights role sector share shareholders Shariah boards Shariah-compliant specific stakeholders structure Sukuk supervisory authorities Tier 2 capital transactions transparency trends

Oblíbené pasáže

Strana 135 - Assets classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the...‎

Objevuje se u 39 knih od 1949-2007.

Strana 220 - These are, firstly, that the new framework should serve to strengthen the soundness and stability of the international banking system; and secondly that the framework should be fair and have a high degree of consistency in its application to banks in different countries with a view to diminishing an existing source of competitive inequality among international banks.‎

Objevuje se u 25 knih od 1941-2007.

Strana 99 - To qualify as an element of Tier 1 or Tier 2 capital, a capital instrument may not contain or be covered by any covenants, terms, or restrictions that are inconsistent with safe and sound banking practices. Redemptions of permanent equity or other capital instruments before stated maturity could have a significant impact on a bank's overall capital structure.‎

Objevuje se u 10 knih od 1949-2007.

Strana 232 - Supervisors should expect banks to operate above the minimum regulatory capital ratios and should have the ability to require banks to hold capital in excess of the minimum.‎

Objevuje se u 23 knih od 1980-2007.

Strana 232 - Supervisors should seek to intervene at an early stage to prevent capital from falling below the minimum levels required to support the risk characteristics of a particular bank and should require rapid remedial action if capital is not maintained or restored.‎

Objevuje se u 12 knih od 1980-2008.

Strana xxiii - EBIT Earnings before interest and taxes EBITDA Earnings before interest, taxes, depreciation and amortization ED Exposure Draft EPS Earnings per share EStG Einkommensteuergesetz et al.‎

Objevuje se u 66 knih od 1997-2008.

Strana 232 - Supervisors should review and evaluate banks' internal capital adequacy assessments and strategies, as well as their ability to monitor and ensure their compliance with regulatory capital ratios. Supervisors should take appropriate supervisory action if they are not satisfied with the result of this process.‎

Objevuje se u 13 knih od 2001-2008.

Strana 107 - Trading positions are understood to mean the bank's proprietary positions in financial instruments 3 which are taken on with the intention of benefiting in the short term from actual or expected differences between their buying and selling prices or of hedging other elements of the trading book, or which are held for short-term resale, or in order to execute a trade with a customer.‎

Objevuje se u 11 knih od 1982-2007.

Strana 200 - ... discussed in this section (some of them are drawn from the analysis of recent research in chapter lV, and others from actual experience in the crisis period). First, surveillance can fail because countries do not disclose adequate information. Transparency refers to the process by which information about existing conditions, decisions and actions is made accessible, visible and understandable to all stakeholders. ln the context of the Asian crisis, improved transparency might have helped prevent...‎

Objevuje se u 7 knih od 1964-2007.

Strana 209 - The amount of change in the financial liability's fair value that is not attributable to changes in market conditions; • The method used to determine the effects of the changes from a benchmark interest rate; • Where an impairment of a financial asset is recorded through an allowance account (for example, a provision for doubtful debts as opposed to a direct reduction to the carrying amount of the receivable), a...‎

Objevuje se u 4 knih od 2006-2007.

Bibliografické údaje

Název	Risk Analysis for Islamic Banks World Bank e-Library
Autoři	Hennie van Greuning, Zamir Iqbal
Vydání	ilustrované vydání
Vydavatel	World Bank Publications, 2008
ISBN	0821371428, 9780821371428
Délka	Počet stran: 309

Exportovat citaci	BiBTeX EndNote RefMan

O službě Knihy Google - Zásady ochrany soukromí - Smluvní podmínky - Informace pro vydavatele - Nahlásit problém - Nápověda - Domovská stránka Google