Risk Management in
Islamic Financial Instruments
instruments and techniques?
2 When a new risk management product or scheme is introduced, does the bank get
clearance from the Sharī‘ah Board?
3 Does the bank use securitization to raise funds for specific investments/projects?
4 Do you have a reserve that is used to increase the profit share (rate of return) of
depositors in low-performing periods?
5 Is your bank of the view that the Basel Committee standards should be equally applicable
to Islamic banks?
6 Is your organization of the view that supervisors/regulators are able to assess the true
risks inherent in Islamic banks?
7 Does your organization consider that the risks of investment depositors and current
accounts shall not mix?
Capital Requirement in Islamic Banks compared to Conventional Banks
Less Same more
Do you think that the capital requirements for Islamic banks
as compared to conventional banks should be