Mapping the Risks and Risk Management Practices in Islamic Banking

Cover -- Title Page -- Copyright -- Contents -- Foreword -- About the Authors -- Chapter 1 Introduction: Research Background and Motivation -- Systemic Importance of Islamic Banking and Finance -- Research Aims, Objectives and Questions -- Research Hypotheses -- Significance of the Study -- Overview of the Research Methodology -- Overview of the Research -- Chapter 2 Principles of Islamic Banking and Finance -- Historical Background of Islamic Banking and Finance -- Size of the Industry -- Principles of Islamic Banking and Finance -- Basic Islamic Financing Contracts -- Murabahah -- Mudarabah (Profit‐Sharing Agreement) -- Musharakah (Equity Participation) -- Ijarah and Ijarah wa‐Iqtinah -- Istisna'a -- Wakala -- Bai' Salam -- Other Islamic Financial Products -- Sukuk: A Step Toward Securitisation -- What is Sukuk? -- Types of Sukuk -- Developments in the Sukuk Market -- Islamic Banking Versus Conventional Banking -- Institutional Developments in Islamic Banking and Finance Industry -- Conclusion -- Chapter 3 Risk Management in Islamic Banks: A Theoretical Perspective -- Risk Management: Basic Concepts and Techniques -- What is Risk Management? -- History of Risk Management -- Systemic Importance of Risk Management -- Risk Management Versus Risk Measurement -- Risk Management Framework -- Risk Management and the Credit Crunch -- Classification of Risks -- Risks Common to Both Islamic and Conventional Banks -- Credit Risk -- Concentration Risk -- Market Risk -- Liquidity Risk -- Asset-Liability Management -- Operational Risk -- Further Risk Areas Specific to Islamic Banks -- Displaced Commercial Risk -- Shari'ah Non‐Compliance Risk -- Reputational Risk -- Accounting Standards -- Fiduciary Risk -- Corporate Governance Risk -- Regulatory and Tax Issues -- Legal Risk -- Short Track Record -- Risk Categories are Entangled.