Year 2019, Volume 5, Issue 1, Pages 20 - 39 2019-03-31

Risk Management of Financial Instruments in Islamic Banks: An Overview

Abderrahmane Sakouili [1] , Chroqui Razane [2]

114 168

Risk management plays a major role in the success and survival of various financial institutions around the world. Islamic Financial institutions not being the exception, on the contrary, given the authenticity of their modus operandi and the nature of their financial products, are obliged to use more credible and rigorous risk management systems. A thorough review of the Islamic economy literature based on books, research articles, monographs and reports, was conducted to prepare this study. The main objective is to define and explain the risk management tools (Urboun, Hamish al- Jiddiyah, Khiyarat, Rahn, etc.) used by Islamic financial institutions in financing instruments (Mourabaha, Ijarah, Salam, etc.), in order to unveil their nature and specificity. Which enabled the creation of a summary   table presenting the Risk management tools, the products in which they are used and the risks for which they are used.

Islamic financial institutions, Risk management tools, , Financing instruments
  • Aazam. A, 1976, « Nadariyat al-aqd wa al-kafala », p. 4
  • Abo ghidda. A, 1985, « Al-khyar and its effect on contracts », p. 43
  • Abu Daoud. S, 2009 « Sunan Abu Dawood », 1st edition, Vol. 5, p. 361 Hadith N° 3502Al-‘Ali. S, 2008, « Theory of contract », p. 398,
  • Al- Nawawi. Y, « Al-Majmu' Sharh Al-Muhadhdhab », Dar al-fikr, Vol. 9, pp. 193-194, p. 225, p. 335
  • Al-Baihaqi. A,2003, « Sonan Al-Baihaqi », Dar al-Kutub al-‘Ilmiyyah,Vol. 6, pp. 56-57, Hadith N°11180
  • Al-Baji.S, 1913 « Al-Montaqa Charh Mouatae Imam Dar Al-hijra Malek Abn Anass », Vol. 4, pp. 157-158
  • Al-Balkhi. N, 2000, « Al-Fatawa Al-Hindiyyah », Vol. 3, p. 8
  • Al-Bukhari.M, 2001, « Sahih al-Bukhari », Vol. 4, p. 41, Hadith N°2916
  • Al-Charbini. K. M, 1868 , « Al-Siraj Al-Monir », Vol. 2, p. 125
  • Al-Dasouqi. M. A, « Hachiat Al-Dasouqi », Vol. 3, p. 96
  • Al-Fayuomi. A, 1987, « Al-Misbah Al-Monir », Lebanon library, p. 167
  • Al-Hamiri. N. B, 1999, « Chamsso Al-‘oloum », Dar Al-Fikr, Vol. 3, p. 729
  • Al-Hassoun. A, 2002, « Khiyar al-Ghabn in netting agreements », Journal of Arabic Studies, Vol. 2, N° 7, p. 5
  • Al-Jaziri. A, 2003, « Al-Fiqh ‘Ala Al-Mazahib Al-arba’a », House of scientific books, Vol. 2, p. 154
  • Al-Kassani. A, 2003, « Badai’ Al-Sanai’ Fi Tartib Al-Chari’ », House of scientific books, Vol. 5, p. 130, pp. 173-174, Vol. 7, pp. 395-396
  • Al-Khatabi. A, 1932, « Ma’alim Al-Sunan », Vol. 3, p. 119
  • Al-Marghinani. A, 1997, « Al-Bidayah », Vol. 3, p. 23
  • Al-Mbarkafori. M. A, « Tuhfat Al-Aahodhi », Vol. 4, pp. 401-402, Hadith N° 1265
  • Al-Othaimin. M, 2002, « Al-Charh Al-Momti’ ‘ala Zad al-Mostaqni’ », Vol 8 p310
  • Al-Qaliyubi, 2003, « Hachiata Qaliyubi wa ‘Omaira », Vol. 2, pp. 190-191
  • Al-Qortobi. M, « Al-Jami’ Li-Ahkam Al-Quoran ‘ », 1964, dar Al-kotob al-missria, Vol. 2, p. 355, Vol. 5, pp. 150-151, Vol. 11, p. 307
  • Al-Ramly. S, 1984, « Nihayat al-Muhtaj », Dar Al-Fikr, Vol. 4, pp. 4-6
  • Al-Razzi. M, 1975, « Mokhtar al-Sihah », Dar al-kitab al-‘Arabi, p. 209, p. 226
  • Al-Sakhaoui.M. S, 1985, « Al-Maqassid Al-Hassanah », pp. 631-632, Hadith N° 1081
  • Al-Sanhori. A, 1998, « Masadir Al-Haq Fi Al-Fiqh Al-Islmai », Vol. 4, pp. 160-162
  • Al-Tirmidhi, 1996, « Jami` at-Tirmidhi », Vol 2 p 544 Hadith N°1265
  • Al-Zohaili. W, 1985, « Al-fiqh Al-Islami wa adilatoh », Dar al-fikr, Vol 4 pp 221-224, p524, pp 529-533,
  • Archer.S,Rifaat.A.A, 2013, « Islamic Finance: The Regulatory Challenge », John Wiley & Sons, pp. 109-110, p. 96, pp. 107-108
  • Ayub.M, 2007, « Understanding Islamic Finance », John Wiley & Sons, p. 116,
  • Bank Negara Malaysia, 2014, « Ijarah”, Islamic Banking and Takaful Department », pp. 23-24
  • Bank Negara Malaysia, 2015, « Rahn (Shariah Requirements and Optional Practices) Exposure Draft », Islamic banking and takaful department, p. 5
  • Chabir. M.O,1993, «Khiyar al-Naqd wa Tatbiqatoh fi Mo’amalat Al-massarif al-Islamia », PP 223-224
  • Daoud. A, 2011, «The provisions of the contract in Islamic jurisprudence and civil law», p532
  • Dubai Islamic bank, Journal of Islamic economy, N°362, p. 31
  • EL TIBY.M, 2011, « Islamic Banking: How to Manage Risk and Improve Profitability », John Wiley & Sons, p 127, p191
  • Faleel. J, 2012, « Islamic Finance for Dummies », John Wiley & Sons
  • Habib. A, Khan. T, 2007, « Risk Management in Islamic Banking », Edward Elgar Publishing, p. 146
  • Ibn ‘Abidin. M. A, 2003 « Radu al-Muhtar ala al-Dur al-Mukhtar », House of Book’s World, Vol. 7, p. 109, pp. 117-119, p. 363
  • Ibn Hanbal. A, « Mosnad Imam Ahmad », Vol. 11, p. 332, Hadith N° 6723
  • Ibn Hijr.A, « Fath Al-bari »,1st edition, Dar Al-Kotob Al-Salafia, Vol. 5, p. 91, pp 567-571
  • Ibn Humam. K, 2003, « Fath Al-qadir », Dar al-Kutub al-‘Ilmiyyah, Vol. 6, pp. 309-311
  • Ibn Jozaii. M, « Al-Qawanin Al-Fiqhya », p. 180
  • Ibn Kathir. I, 1999, « Tafsir ibn Kathir », Dar Taiba, Vol. 1, p. 727
  • Ibn Majah. M.B, « Sunan Ibn Majah, Dar Ihiae Al-Kotob Al-‘arabia, Vol. 2, p. 755, Hadith N°2246
  • Ibn Malik. A, 2004, « Al-Muwatta’ », Vol. 4, p. 879, Hadith N°541/2557, p. 985, Hadith N°580/2517
  • Ibn Mandour. M, « Lissan Al-‘Arab », Dar Sadir, Vol. 13, pp. 144-145 & pp. 309-310 & Vol. 7, p. 192
  • Ibn Nujaym. O, 2002, « Al-Nahr al-Fa’iq Sharh Kanz al-Daqaiq », Dar al-Kutub al-‘Ilmiyyah, Vol. 3, p. 380
  • Ibn Qaim Al-jawzia, « Badai’ Al-Fawaid », International Islamic Fiqh Academy, p. 1443
  • Ibn Qaim Al-jawzia, 1991, « I’lam al-Mouqi’een ‘An Rabb al-‘Alamen », Dar al-Kutub al-‘Ilmiyyah, Vol. 2, pp. 19-20
  • Ibn Qodama. A, 1993, « Al-Charh Al-Kabir ‘Ala Matni Al-Moqni’ », Dar al-kitab al-‘arabi, Vol. 4, p. 59
  • Ibn Qodama. M. A, 1997, « Al-Moghni », Dar ‘Alam al-Kotob, Vol 6 p 38
  • Ibn Rochd. M. A, 1994, « Bidâyat ul-mudjtahid wa nihâyat ul-Muqtasid », Vol 3 pp 400-401 / p337
  • Iqbal. Z, Mirakhor. A, 2011, « An Introduction to Islamic Finance-Theory and Practice » Second Edition, John Wiley & Sons, pp. 93-94
  • Journal of the Judicial Verdicts, Art 356, p. 52
  • Kamal. A, 2013, « Khiyar al-‘Aib fi al-fiqh al-islami », Journal of Surra Man Raa Vol 9 N°35 p 198
  • Khan. A.M, 2003, « Islamic Economics and Finance: A Glossary » 2nd edition, Routledge, p. 125
  • Kureshi.H, Mukhsia.S.I, Mohsin.H, 2015, « Financial Engineering in Islamic Finance the Way Forward: A Case for Shariah compliant derivatives », partridge,
  • Mar’i. A. A, 1973, « la résiliation des contrats dans la Charia », p. 187
  • Masiukiewicz. P, 2017, « Expansion of Islamic Finance in Europe », Journal of Intercultural Management, Vol. 9, No. 2, pp. 31-51
  • Ministry of Awqaf & Islamic Affairs Kuwait, 1983, « Al-Maouso’a Al-Fiqhia », Vol. 21, p. 57.
  • Murshidi & al, 2013, « Rights of Khiyar (Option) in the Issue of Consumerism in Malaysia », Middle-East Journal of Scientific Research, p .155
  • Najdat. M, 2013, « Kiyar al-Naqd fi al-fiqh al-Islami », Damascus University Journal of Economic and Legal Sciences Vol. 29, p. 405, pp. 394-395
  • Nestorovic. C, 2013, « What is the Future of Islamic Finance? », Islamic Finance News, Vol. 10, Issue 29, p. 14-15
  • Obaidullah. M, 1998, « Financial Engineering with Islamic Options », Islamic Economic Studies, Vol. 6, p. 77
  • Rayner. S. E, 1991, « The Theory of Contracts in Islamic Law, Springer, pp. 327-328
  • Sabiq. S, 1983, « Fiqh Al-Sunna », Al-fath lili’lam al-‘Arabi, Vol. 3, p. 130, p. 167
  • Saniki. Z, « Asna Al-Matalib Fi Charh Rawd Al-Talib », Vol. 2, p. 31
  • Wahyudi.I, Rosmanita.F, Prasetyo.M, Surya Putri.N, 2015, « Risk Management for Islamic Banks Recent Developments from Asia and the Middle East », John Wiley & Sons, p. 131, p. 104, p. 107, pp. 123-124, pp. 117-119
  • Yaakub & al, 2013, « Late payment charge in Islamic bank », The 5th International Conference on Financial Criminology (ICFC), p. 383
  • Yaakub. A, 2014, « A Revisit to the Practice of Late Payment Charges by Islamic Banks in Malaysia », Jurnal Pengurusan 42, p. 187
Primary Language en
Subjects Economics
Published Date Mart
Journal Section Articles
Authors

Author: Abderrahmane Sakouili (Primary Author)
Institution: University Hassan the 1st Settat, Morocco, LAMSAD
Country: Morocco


Author: Chroqui Razane
Institution: University Hassan the 1st Settat, Morocco, LAMSAD
Country: Morocco


Dates

Publication Date: March 31, 2019

Bibtex @review { ijisef419518, journal = {International Journal of Islamic Economics and Finance Studies}, issn = {2149-8393}, eissn = {2149-8407}, address = {Politik Ekonomik ve Sosyal Araştırmalar Merkezi}, year = {2019}, volume = {5}, pages = {20 - 39}, doi = {10.25272/ijisef.419518}, title = {Risk Management of Financial Instruments in Islamic Banks: An Overview}, key = {cite}, author = {Sakouili, Abderrahmane and Razane, Chroqui} }
APA Sakouili, A , Razane, C . (2019). Risk Management of Financial Instruments in Islamic Banks: An Overview. International Journal of Islamic Economics and Finance Studies, 5 (1), 20-39. DOI: 10.25272/ijisef.419518
MLA Sakouili, A , Razane, C . "Risk Management of Financial Instruments in Islamic Banks: An Overview". International Journal of Islamic Economics and Finance Studies 5 (2019): 20-39 <http://dergipark.org.tr/ijisef/issue/44316/419518>
Chicago Sakouili, A , Razane, C . "Risk Management of Financial Instruments in Islamic Banks: An Overview". International Journal of Islamic Economics and Finance Studies 5 (2019): 20-39
RIS TY - JOUR T1 - Risk Management of Financial Instruments in Islamic Banks: An Overview AU - Abderrahmane Sakouili , Chroqui Razane Y1 - 2019 PY - 2019 N1 - doi: 10.25272/ijisef.419518 DO - 10.25272/ijisef.419518 T2 - International Journal of Islamic Economics and Finance Studies JF - Journal JO - JOR SP - 20 EP - 39 VL - 5 IS - 1 SN - 2149-8393-2149-8407 M3 - doi: 10.25272/ijisef.419518 UR - https://doi.org/10.25272/ijisef.419518 Y2 - 2018 ER -
EndNote %0 International Journal of Islamic Economics and Finance Studies Risk Management of Financial Instruments in Islamic Banks: An Overview %A Abderrahmane Sakouili , Chroqui Razane %T Risk Management of Financial Instruments in Islamic Banks: An Overview %D 2019 %J International Journal of Islamic Economics and Finance Studies %P 2149-8393-2149-8407 %V 5 %N 1 %R doi: 10.25272/ijisef.419518 %U 10.25272/ijisef.419518
ISNAD Sakouili, Abderrahmane , Razane, Chroqui . "Risk Management of Financial Instruments in Islamic Banks: An Overview". International Journal of Islamic Economics and Finance Studies 5 / 1 (March 2019): 20-39. https://doi.org/10.25272/ijisef.419518
AMA Sakouili A , Razane C . Risk Management of Financial Instruments in Islamic Banks: An Overview. IJISEF. 2019; 5(1): 20-39.
Vancouver Sakouili A , Razane C . Risk Management of Financial Instruments in Islamic Banks: An Overview. International Journal of Islamic Economics and Finance Studies. 2019; 5(1): 39-20.