Advertisement

The Basel Accords in Relation to Islamic Finance

  • Abul HassanEmail author
  • Sabur Mollah
Chapter

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.

Keywords

Banking Basel accord II Capital adequacy Liquidity risk Capital buffer Leverage ratio Cash flow 

References

  1. Basel Committee. (2001). Basel Committee on Banking Supervision.Google Scholar
  2. 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.
  3. 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.
  4. Basel Committee on Bank Supervision. (2011). Basel III (Revised Version of Capital Framework June 2011) Published by the BCBS.Google Scholar
  5. Islamic Financial Services Board. (2001). Kuala Lumpur: Malaysia.Google Scholar
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. 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.CrossRefGoogle Scholar
  12. 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.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.King Fahd University of Petroleum and MineralsDhahranSaudi Arabia
  2. 2.Accounting and FinanceSwansea UniversitySwanseaUK

Personalised recommendations