Ebook: Islamic Banking and Financial Crisis: Reputation, Stability and Risks

Examines the resilience of Islamic banking during the financial crisis and draws lessons for risk management

Do Islamic financial institutions perform better than their Western counterparts during periods of financial stress? How do Islamic financial institutions manage risk, given their unique characteristics and the need for Shari’ah compliance?

Islamic Banking and Financial Crisis looks at the challenges for Islamic financial institutions in an international post-Basel II system where banks are required to have more capital and liquidity. It also examines the influence of governance on client and investor perceptions and their implications for institutional stability and sustainability. It concludes by suggesting how the Islamic financial industry can better fulfil both the legal and social requirements of Shari’ah.

Key Features

• Assesses how Islamic banks weathered the financial crisis and what lessons can be learnt
• Focuses 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
• Case studies from the Gulf, Malaysia, the UK, Pakistan, Turkey and GCC countries

Read and download the first chapter from Islamic Banking and Financial Crisis for free now (pdf)