Professional Documents
Culture Documents
Management
Presented by
Houda Cherrak
Bouchra Touzani
Outline
• Brief Overview of Islamic Banking System
• Types of Islamic Financial Instruments.
• Common risks faced by Conventional and Islamic
Financial Institutions.
• Risk Identification and Management of Shariah
Compliant Banking Products.
• General View of Islamic Financial Indices.
Brief Overview of Islamic Banking System
• Murabaha is the sale of a good to the client at a higher price than the spot
price. In the Islamic finance world, the margin that is done is justified by
the fact that the seller takes the risk of a deferred payment.
2,9
2,8
2,7
2,6
2,5
credit risk market risk liquidity risk operational risk
Credit risk
3,7
3,5
Credit risk 3,3
average in the
industry: 2.7 3,1
2,9
2,7
2,5
Market risk
3,7
3,5
Average market 3,3
risk in the
industry: 3.05 3,1
2,9
2,7
2,5
Liquidity risk
3,4
3,2
3
Average
liquidity risk in 2,8
the industry: 2,6
2.8
2,4
2,2
2
Operational risk
3,4
3,3
3,2
Average 3,1
operational risk 3
average in the 2,9
industry: 2.9 2,8
2,7
2,6
2,5
Severity of risks
3,9
3,7
3,5
3,3
3,1
2,9
2,7
2,5
This standards focus mainly on the management systems and not about
environmental pollution prevention. Actually, it implies outlining clear
environmental goals and generating regular performance reports.
Examples of indices:
Dow Jones Islamic Indexes
Dow Jones Citigroup
S&P Shariah Indexes
FTSE
HSBC
Subprime Crisis and Islamic Finance
• Two other Islamic funds have performed better than the S&P
500.