Rania Abdelfattah Salem. Risk Management for Islamic Banks

Year 2019, Volume: 6 Issue: 1, 123 - 126, 15.02.2019

Ahmet Suayb Gundogdu

Abstract

The eight chaptered book entitled “Risk Management for Islamic Banks” is kind of a
review of literature on the subject of risk management in Banks, particularly Islamic
banks. Chapter 5 and chapter 6 are the main parts of the book. In chapter 5, the book
supposedly introduces various risk mitigation methods for Islamic banks. However,
this chapter is primarily a review of existing literature. In chapter 6, the book supposedly demonstrates how to adopt an integrated risk management framework to
fit Islamic banks, by presenting a hypothetical case of an Islamic bank and adopting
suggested risk management procedures. While developing the argument, the book
assumes, with reference to the literature, that Islamic banks’ business models and
products are homogenous. While such assumptions are made in conventional economics and finance and any results can be derived with these assumptions, they
are not deemed scientific and acceptable in Islamic economics and finance which
looks for reality instead not assumptions in order to have scientific inferences. For
example, conventional economics and finance assumes that Riba is same as mark-up
in trade transactions and such an assumption is reprimanded in the Holy Qur’an.

Keywords

Risk Management for Islamic Banks

References

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