Please contemplate the following scenarios and answer accordingly. b. Islamic banks are often criticized for following KIBOR as pricing benchmark in structuring various products at asset and liability side. As it creates similarity with conventional banking and doubts among stakeholders, they demand IB to adopt/develop other pricing benchmarks which are innovative, transparent, and more suitable to shariah precepts. Requirement: As an Islamic Banker, please evaluate if following KIBOR poses a shariah non-compliance risk and discuss reasons and constraints which push an Islamic bank to follow KIBOR.

Please contemplate the following scenarios and answer accordingly. b. Islamic banks are often criticized for following KIBOR as pricing benchmark in structuring various products at asset and liability side. As it creates similarity with conventional banking and doubts among stakeholders, they demand IB to adopt/develop other pricing benchmarks which are innovative, transparent, and more suitable to shariah precepts. Requirement: As an Islamic Banker, please evaluate if following KIBOR poses a shariah non-compliance risk and discuss reasons and constraints which push an Islamic bank to follow KIBOR.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA1: International Financial Reporting Standards

Section: Chapter Questions

Problem 6MCQ

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