Due to the immense failure of banking institutions in response to the global financial crisis has witnessed an increase of development on risk management. However Islamic banking is much less affected by the destruction for a variety of reasons probably because it is still a very small part of the global system and has yet to develop enough connectivity to catch the cold. The current wave of financial liberalization and globalization naturally stimulates the question of risk management in Islamic banking. a. As outlined above, critically discuss the issues and challenges of risk management faced by Islamic banking.

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
ChapterA6: Appendix 6: Government Intervention During The Asian Crisis
Section: Chapter Questions
Problem 14DQ
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Due to the immense failure of banking institutions in response to the global financial crisis has
witnessed an increase of development on risk management. However Islamic banking is much less affected by the destruction for a variety of reasons probably because it is still a very small part of the global system and has yet to develop enough connectivity to catch the cold. The
current wave of financial liberalization and globalization naturally stimulates the question of risk management in Islamic banking.

a. As outlined above, critically discuss the issues and challenges of risk management faced by Islamic banking.

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