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  • Luthfan Abel Alghifary - Prudential Aspects (Conclusion)

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    Islamic banks must comply with prudential measures like conventional banks to ensure financial stability and soundness. These measures include non-performing financing to total financing (NPL/F) ratios and financing to deposit ratios. Financing to deposit ratios compare money coming in through deposits versus money going out through financing, and Islamic banks must maintain this ratio at a certain percentage to avoid risk from too much money flowing in and out.

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    Islamic banks must comply with prudential measures like conventional banks to ensure financial stability and soundness. These measures include non-performing financing to total financing (NPL/F) ratios and financing to deposit ratios. Financing to deposit ratios compare money coming in through deposits versus money going out through financing, and Islamic banks must maintain this ratio at a certain percentage to avoid risk from too much money flowing in and out.

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    20 views1 page

    Luthfan Abel Alghifary - Prudential Aspects (Conclusion)

    Uploaded by

    Alghifxry
    Islamic banks must comply with prudential measures like conventional banks to ensure financial stability and soundness. These measures include non-performing financing to total financing (NPL/F) ratios and financing to deposit ratios. Financing to deposit ratios compare money coming in through deposits versus money going out through financing, and Islamic banks must maintain this ratio at a certain percentage to avoid risk from too much money flowing in and out.

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    Luthfan Abel Alghifary – 20410800

    ISLAMIC BANKING LAW – Prudential Aspects

    Prudential aspects, it means that Islamic bank must generally complied about measures based on
    the fitness of the bank performances as an financial intermidation institution. Islamic bank is also
    treated as equally as conventional bank. NPL/F is the measures. In the conventional bank is always
    loan but in Islamic bank sometimes its loan or debt, but mostly the measures is loan. Financing to
    deposit ratio is a comparison between money that comes in and comes out. There must be certain
    ratio for this, because if theres too much money that in and out is dangerous. It must be under
    certain percentage.

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