Lowly or negative benchmark rates bandwagon: any risk implications for Islamic banks?
To stimulate the economy, regulators across all jurisdictions have been taking unconventional approaches. Thus, in recent years, the management of benchmark rates (or interest rates) has received considerable prominence in the banking sector due to some reasons including supervision banks’ benchmark...
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| Format: | Article |
| Language: | English |
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Creative Commons Attribution-ShareAlike (CC BY-SA)
2018
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| Online Access: | http://irep.iium.edu.my/68302/ http://irep.iium.edu.my/68302/1/68302%20-%20Lowly%20or%20Negative%20Benchmark%20Rates%20Bandwagon.pdf |
| _version_ | 1848786916205395968 |
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| author | Chattha, Jamshaid Anwar Syed Jaafar Alhabshi, Syed Musa |
| author_facet | Chattha, Jamshaid Anwar Syed Jaafar Alhabshi, Syed Musa |
| author_sort | Chattha, Jamshaid Anwar |
| building | IIUM Repository |
| collection | Online Access |
| description | To stimulate the economy, regulators across all jurisdictions have been taking unconventional approaches. Thus, in recent years, the management of benchmark rates (or interest rates) has received considerable prominence in the banking sector due to some reasons including supervision banks’ benchmark rates under Basel II. This paper reviews the possible dysfunctional implications of lowly and/or negative rates and provides a risk management and regulatory perspective for Islamic banks. These consequences call for a better risk management with appropriate tools and effective supervisory oversight. It hoped that the initial discussion presented in this paper on the implications and controls invites a broader debate on this issue in the Islamic financial services industry |
| first_indexed | 2025-11-14T17:16:38Z |
| format | Article |
| id | iium-68302 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T17:16:38Z |
| publishDate | 2018 |
| publisher | Creative Commons Attribution-ShareAlike (CC BY-SA) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-683022018-12-06T07:35:31Z http://irep.iium.edu.my/68302/ Lowly or negative benchmark rates bandwagon: any risk implications for Islamic banks? Chattha, Jamshaid Anwar Syed Jaafar Alhabshi, Syed Musa HG1501 Banking HG4001 Financial management. Business finance. Corporation finance. To stimulate the economy, regulators across all jurisdictions have been taking unconventional approaches. Thus, in recent years, the management of benchmark rates (or interest rates) has received considerable prominence in the banking sector due to some reasons including supervision banks’ benchmark rates under Basel II. This paper reviews the possible dysfunctional implications of lowly and/or negative rates and provides a risk management and regulatory perspective for Islamic banks. These consequences call for a better risk management with appropriate tools and effective supervisory oversight. It hoped that the initial discussion presented in this paper on the implications and controls invites a broader debate on this issue in the Islamic financial services industry Creative Commons Attribution-ShareAlike (CC BY-SA) 2018-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/68302/1/68302%20-%20Lowly%20or%20Negative%20Benchmark%20Rates%20Bandwagon.pdf Chattha, Jamshaid Anwar and Syed Jaafar Alhabshi, Syed Musa (2018) Lowly or negative benchmark rates bandwagon: any risk implications for Islamic banks? Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics), 10 (1). pp. 115-134. ISSN 2087-135X E-ISSN 2407-8654 http://journal.uinjkt.ac.id/index.php/iqtishad/article/view/6121 DOI: 10.15408/aiq.v10i1.6121 |
| spellingShingle | HG1501 Banking HG4001 Financial management. Business finance. Corporation finance. Chattha, Jamshaid Anwar Syed Jaafar Alhabshi, Syed Musa Lowly or negative benchmark rates bandwagon: any risk implications for Islamic banks? |
| title | Lowly or negative benchmark rates bandwagon: any risk implications for Islamic banks? |
| title_full | Lowly or negative benchmark rates bandwagon: any risk implications for Islamic banks? |
| title_fullStr | Lowly or negative benchmark rates bandwagon: any risk implications for Islamic banks? |
| title_full_unstemmed | Lowly or negative benchmark rates bandwagon: any risk implications for Islamic banks? |
| title_short | Lowly or negative benchmark rates bandwagon: any risk implications for Islamic banks? |
| title_sort | lowly or negative benchmark rates bandwagon: any risk implications for islamic banks? |
| topic | HG1501 Banking HG4001 Financial management. Business finance. Corporation finance. |
| url | http://irep.iium.edu.my/68302/ http://irep.iium.edu.my/68302/ http://irep.iium.edu.my/68302/ http://irep.iium.edu.my/68302/1/68302%20-%20Lowly%20or%20Negative%20Benchmark%20Rates%20Bandwagon.pdf |