The Islamic Banking System ( Credit Risk )

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In the Islamic banking system,according to sources and causes of risks, it might be an external risk which due to changes in risk policies and regulations caused by banking supervisory authorities ( regulatory risk ) or macro and external impact of benchmarks such as LIBOR interest rate factors, namely the use of determine the speed mark Islamic Bank ( known as interest rate risk ) ;There are risks to fulfill obligations related to the debtor by Islamic Banking( Credit risk ) , there are a set of risks, operational risks collectively,Islamic banks themselves , the people involved / staff, including errors, negligence and fraud, the system and the use of technology in the Islamic Banking , the proceedings and / or processes and procedures…show more content…
Sundarajan and Errico (2002) pointed out that attach to various non- PLS methods, such as the specific risks of Salam and Ijara. Firstly, the Islamic bank is exposed to credit and commodity price risk ; Secondly, unlike traditional lease contracts, Islamic banks can not transfer ownership , and therefore have to bear all risks until the end of the lease . Credit risk in Islamic banks Musharakah, Mudarabah, Istisna’, Salam, Ijarah and murabahah is the main contract with their customers to use in providing facilities for Islamic banks. Possible classification , these contracts may be: Islamic pattern of non- debt financing (Musharakah and Mudarabah) and debt creation mode ( the Other ) . A third possible classification : Original Islamic mode of financing (Musharakah, Mudarabah, Istisna , Salam ) and financing of "reinventing " mode (Ijarah and murabahah). Credit risk is the most important source of risk in Islamic banking and in Conventional banks.Credit risk ( counterparty risk of failure ) is significant for banks that 1988 standards of Basel Committee on Banking Supervision Bank. Capital requirements , the establishment of a major deal with this risk. Default risk which the risk of the bank portfolio covering 80 % of the average bank account ; It is 80% of cases of bank failures reasons. It is generally considered the Islamic Banks face higher credit risk than their traditional counterparts . Islamic banks ( which is not the Islamic Bank based on
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