Conceptual framework on risk-based supervision of Islamic Banks: a proposed risk-based supervisory framework

The main objective of this conceptual study is to propose an ideal risk-based supervisory framework for Islamic banks that recognises the specificities of Islamic banks. Thus, it gives a more accurate assessment of their financial health (risk profile) as opposed to using current conventional b...

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Main Authors: Suleiman Sani, Dalhatu, Sharofiddin, Ashurov
Format: Article
Language:English
Published: Smart Ever Konferans Organizasyon Limited Sirketi 2020
Subjects:
Online Access:http://irep.iium.edu.my/82693/
http://irep.iium.edu.my/82693/1/Published%20Journal%20Article%20-%20IJRTESH.pdf
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author Suleiman Sani, Dalhatu
Sharofiddin, Ashurov
author_facet Suleiman Sani, Dalhatu
Sharofiddin, Ashurov
author_sort Suleiman Sani, Dalhatu
building IIUM Repository
collection Online Access
description The main objective of this conceptual study is to propose an ideal risk-based supervisory framework for Islamic banks that recognises the specificities of Islamic banks. Thus, it gives a more accurate assessment of their financial health (risk profile) as opposed to using current conventional banking based frameworks to assess Islamic banks. The methodology adopted has been a qualitative approach through a critical in-depth review of literature related to the area of study based on available secondary data to generate valuable insights. The expected implication and contribution of the framework is that Islamic banks will be better supervised by regulators which will lead to safer Islamic banks and in turn promote the safety and soundness of the financial system at large. The study will also aid Islamic banks to better understand and manage the unique risks inherent in their line of business (Islamic banking). This paper also contributes to alleviating the current dearth of academic literature on the crucial regulatory subject of risk-based supervision in the Islamic finance industry.
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spelling iium-826932020-09-07T03:56:24Z http://irep.iium.edu.my/82693/ Conceptual framework on risk-based supervision of Islamic Banks: a proposed risk-based supervisory framework Suleiman Sani, Dalhatu Sharofiddin, Ashurov BPH Islamic Economics HG3368 Islamic Banking and Finance The main objective of this conceptual study is to propose an ideal risk-based supervisory framework for Islamic banks that recognises the specificities of Islamic banks. Thus, it gives a more accurate assessment of their financial health (risk profile) as opposed to using current conventional banking based frameworks to assess Islamic banks. The methodology adopted has been a qualitative approach through a critical in-depth review of literature related to the area of study based on available secondary data to generate valuable insights. The expected implication and contribution of the framework is that Islamic banks will be better supervised by regulators which will lead to safer Islamic banks and in turn promote the safety and soundness of the financial system at large. The study will also aid Islamic banks to better understand and manage the unique risks inherent in their line of business (Islamic banking). This paper also contributes to alleviating the current dearth of academic literature on the crucial regulatory subject of risk-based supervision in the Islamic finance industry. Smart Ever Konferans Organizasyon Limited Sirketi 2020-09-02 Article PeerReviewed application/pdf en http://irep.iium.edu.my/82693/1/Published%20Journal%20Article%20-%20IJRTESH.pdf Suleiman Sani, Dalhatu and Sharofiddin, Ashurov (2020) Conceptual framework on risk-based supervision of Islamic Banks: a proposed risk-based supervisory framework. International Research in Technology, Engineering, Science and Humanities (IJRTESH), 1 (1). pp. 1-9. ISSN 2717-8854 E-ISSN 2717-8854
spellingShingle BPH Islamic Economics
HG3368 Islamic Banking and Finance
Suleiman Sani, Dalhatu
Sharofiddin, Ashurov
Conceptual framework on risk-based supervision of Islamic Banks: a proposed risk-based supervisory framework
title Conceptual framework on risk-based supervision of Islamic Banks: a proposed risk-based supervisory framework
title_full Conceptual framework on risk-based supervision of Islamic Banks: a proposed risk-based supervisory framework
title_fullStr Conceptual framework on risk-based supervision of Islamic Banks: a proposed risk-based supervisory framework
title_full_unstemmed Conceptual framework on risk-based supervision of Islamic Banks: a proposed risk-based supervisory framework
title_short Conceptual framework on risk-based supervision of Islamic Banks: a proposed risk-based supervisory framework
title_sort conceptual framework on risk-based supervision of islamic banks: a proposed risk-based supervisory framework
topic BPH Islamic Economics
HG3368 Islamic Banking and Finance
url http://irep.iium.edu.my/82693/
http://irep.iium.edu.my/82693/1/Published%20Journal%20Article%20-%20IJRTESH.pdf