Abstract
This chapter elaborates on the risk management in IFIs with an empirical fieldwork by analysing the implications of the Basel III Accord to Islamic banks in the light of IFSB guidelines.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsNotes
- 1.
Tier 1 capital consists of current accounts, saving accounts, time deposits, certificate of deposits and share capital plus reserves. Tier 2 capital consists of cumulative preferred shares plus subordinated debt.
References
Basel Committee. (2001). Basel Committee on Banking Supervision.
Basel Committee on Banking Supervision. (2010a, December). Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems. http://www.bis.org/publ/bcbs189.pdf. Accessed July 21, 2012.
Basel Committee on Banking Supervision. (2010b, December). Basel III: International Framework for Liquidity Risk Measurement, Standards and Monitoring. http://www.bis.org/publ/bcbs188.pdf. Accessed July 21, 2012.
Basel Committee on Bank Supervision. (2011). Basel III (Revised Version of Capital Framework June 2011) Published by the BCBS.
Islamic Financial Services Board. (2001). Kuala Lumpur: Malaysia.
Islamic Financial Services Board. (2005a, December). Capital Adequacy Standard for Institutions (Other Than Insurance Institutions) Offering Only Islamic Financial Services. http://www.ifsb.org/standard/ifsb2.pdf. Accessed June 10, 2012.
Islamic Financial Services Board. (2005b, December). Guiding Principles of Risk Management for Institutions (Other Than Insurance Institutions) Offering Only Islamic Financial Services. http://www.ifsb.org/standard/ifsb1.pdf. Accessed June 10, 2012.
Islamic Financial Services Board. (2008, March). Technical Note on Issues in Strengthening Liquidity Management of Institutions Offering Islamic Financial Services: The Development of ISLAMIC Money Markets. http://www.ifsb.org/docs/mar2008_liquidity.pdf.
Islamic Financial Services Board. (2010, December). Guidance Note on the Practice of Smoothing the Profits Payout to Investment Account Holders. http://www.ifsb.org/standard/eng_GN-_Guidance_Note_on_the_Practice_of_Smoothing.pdf. Accessed June 10, 2012.
Islamic Financial Services Board. (2011, March). Guidance Note in Connection with the IFSB Capital Adequacy Standard: The Determination of Alpha in the Capital Adequacy Ratio for Institutions (Other Than Insurance Institutions) Offering Only Islamic Financial Services. http://www.ifsb.org/standard/eng%20GN-4_IFSB%20CASAlpha%20in%20Capital%20Adequacy%20Ratio%20(Mar_2011).pdf. Accessed June 10, 2012.
Muljawan, M., Dar, H., & Hall, M. (2004). A Capital Adequacy Framework for Islamic Banks: The Need to Reconcile Depositor’s Risk Aversion with Managers’ Risk Taking. Applied Financial Economics, 14, 429–441.
Sundararajan, V. (2008). Issues in Managing Profit Equalization Reserves and Investment Risk Reserves in Islamic Banks. Journal of Islamic Economics, Banking and Finance, 4(1), 1–11.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2018 The Author(s)
About this chapter
Cite this chapter
Hassan, A., Mollah, S. (2018). The Basel Accords in Relation to Islamic Finance. In: Islamic Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-91295-0_18
Download citation
DOI: https://doi.org/10.1007/978-3-319-91295-0_18
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-91294-3
Online ISBN: 978-3-319-91295-0
eBook Packages: Economics and FinanceEconomics and Finance (R0)