Five-day Course

RISK MANAGEMENT IN ISLAMIC BANKING

[The Four-Day Course contents are included, plus]

  • Risk in Islamic banking
  • What are the risks faced by Islamic banks which are not faced by conventional banks?
  • Business risks:- displaced commercial risk, withdrawal risk, solvency risk
  • Governance risks: fiduciary risk, operational risk, transparency risk.
  • Transaction risks: credit risk, market risk, mark-up risk.
  • Treasury risks: asset and liability management, liquidity risk, hedging risk.
  • Systemic risks: regulatory risk, business environment risk, institutional risk.
  • CAMEL ratings for conventional and Islamic banks.
  • Asset, Liability and capital Adequacy issues for Islamic banks
  • Liquidity management in conventional banks
  • Liquidity management in Islamic banks
  • Shariah requirements for Islamic Money Market Instruments.
  • Liability management in conventional banks
  • Liability management in Islamic banks
  • Asset management for conventional banks
  • Asset management for Islamic banks
  • Capital adequacy for conventional banks
  • Capital adequacy for Islamic banks
  • Islamic Banking Business Model
  • What are the implications for Islamic banks using Profit and Loss share [PLS] principles?
  • What does the finance literature tell us about debt finance and PLS finance?
  • Agency problems, asymmetric risk and moral hazard issues
  • Problems associated with PLS in practice
  • Agency theory solution for conventional banks and for Islamic banks.
  • Challenges for Islamic Banks
  • Lack of uniform regulatory framework
  • No single totally Islamic financial center
  • Slow pace of innovation
  • Accounting issues not resolved
  • Inconsistent Shariah rulings
  • Corporate governance
  • Structure of the Industry
  • Personnel and training issues
  • Islamic Financial innovation
  • Financial innovation for conventional banks
  • Financial innovation for Islamic banks
  • Barriers to entry within Islamic financial markets
  • Stages of financial innovation for Islamic banks
  • Which Islamic financial innovations have succeeded and failed?
  • Securitization and financial innovation
  • What are the pressures of Islamic financial innovation?
  • What are the special factors affecting Islamic financial innovation?
  • Financial engineering for Islamic products.
  • Applying the Porter Model to Islamic banks.