Publication:
Risk Assessment of Islamic Banking Products: A Case Study of Murabaha and Ijarah

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dc.citedby1
dc.contributor.authorYusoff A.en_US
dc.contributor.authorHassan R.en_US
dc.contributor.authorSalman S.A.en_US
dc.contributor.authorid55542782500en_US
dc.contributor.authorid55541623500en_US
dc.contributor.authorid56901963000en_US
dc.date.accessioned2024-10-14T03:21:56Z
dc.date.available2024-10-14T03:21:56Z
dc.date.issued2023
dc.description.abstractThere are several implications for the risk management strategy of any financial organization that has adopted the Islamic banking philosophy. Generally speaking, Islamic banking is exposed to the same risks as traditional banking, such as credit, market, liquidity, and operational risks. On the other hand, the sources of risk and risk mitigation strategies differ from those used in conventional banking. Many agreements may be subjected to the same risks, but how those risks influence each contract may vary. Islamic banks are obligated to follow Shariah principles in their business activities. According to Islamic law, loans and deposits with a predetermined fixed return are not permitted under Shariah principles. Consequently, Islamic banks� resource mobilization and funding are based on profit-sharing and risk-sharing arrangements. While risk is a necessary component of Islamic business dealings, uncertainty (Gharar) is illegal. This article aims to assess the specific risks associated with contracts issued by international financial institutions (IFIs), emphasizing two types of Shariah contracts, namely Murabaha and Ijarah. It has been established that both Murabaha and Ijarah, sale-based contracts, will subject the financial institution to the same risks, including credit, operational, market, and liquidity risks. � 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.en_US
dc.description.natureFinalen_US
dc.identifier.doi10.1007/978-3-031-26956-1_55
dc.identifier.epage592
dc.identifier.scopus2-s2.0-85152558068
dc.identifier.spage581
dc.identifier.urihttps://www.scopus.com/inward/record.uri?eid=2-s2.0-85152558068&doi=10.1007%2f978-3-031-26956-1_55&partnerID=40&md5=059b7089ac51372286a42fa34442fac2
dc.identifier.urihttps://irepository.uniten.edu.my/handle/123456789/34709
dc.identifier.volume621 LNNS
dc.pagecount11
dc.publisherSpringer Science and Business Media Deutschland GmbHen_US
dc.sourceScopus
dc.sourcetitleLecture Notes in Networks and Systems
dc.subjectAssessment
dc.subjectIslamic banking
dc.subjectMurabaha and Ijarah
dc.subjectRisks
dc.subjectCommerce
dc.subjectFinance
dc.subjectRisk assessment
dc.subjectWages
dc.subjectAssessment
dc.subjectCase-studies
dc.subjectCredit risks
dc.subjectIslamic banking
dc.subjectLiquidity risk
dc.subjectMarket risks
dc.subjectMurabaha and ijarah
dc.subjectOperational risks
dc.subjectRisk management strategies
dc.subjectRisks assessments
dc.subjectRisk management
dc.titleRisk Assessment of Islamic Banking Products: A Case Study of Murabaha and Ijarahen_US
dc.typeConference Paperen_US
dspace.entity.typePublication
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