Risk Management in
Islamic Financial Instruments
65
Liquidity Ratios
Interbank Ratios are lower than 100% for both Islamic and conventional banks, which indicate
that both types of banks are net borrowers. However, higher ratios of Net Loans / Cust & ST
Funding and Net Loans / Tot Dep & Bor. reflect lower liquidity for the Islamic banks, although
Islamic banks tend to hold more liquid assets. See Chart 4.4.
Chart 4.1: Asset Quality Ratios for Asia Region
Source: BankScope Database 2013
Chart 4.2: Capital Adequacy Ratio for Asia Region
Source: BankScope Database 2013
3,42
22,11
68,83
27,87
2,88
10,69
58,04
10,26
0
10
20
30
40
50
60
70
80
Loan Loss Res / Gross
Loans
%
2011
Loan Loss Prov / Net Int
Rev
%
2011
Loan Loss Res / Impaired
Loans
%
2011
NCO / Net Inc Bef Ln Lss
Prov
%
2011
ASIA Islamic
ASIA Convetional
11,14
17,19
31,03
23,99
7,12
8,84
21,70
7,96
0
5
10
15
20
25
30
35
Tier 1 Ratio
%
2011
Total Capital Ratio
%
2011
Equity / Net Loans
%
2011
Equity / Liabilities
%
2011
ASIA Islamic
ASIA Convetional