Review of Risks and Risk Management Systems in the Largest Islamic Banks of the Arabian Peninsula

Oliwia Khalil-Oliwa

Streszczenie w języku polskim


Theoretical background: The specificity of Islamic principles, on the basis of which Islamic banking was created, as well as the nature of its financial instruments, means that Islamic banks may be exposed to greater risks than conventional banks.

Purpose of the article: The aim of the article is to define key risks identified by Islamic banks and to define risk management systems in the 13 largest banks of the Arabian Peninsula region. The article analyses the annual reports submitted by the supervisory boards of the largest Islamic banks of the Arabian Peninsula for 2018, so that common elements in their risk management processes can be found.

Research methods: Analyses of annual reports of the banks of the Arabian Peninsula region.

Main findings: Supervisory boards of Islamic banks identify risks and implement strategies and risk management structures. The most important risks identified by banks are credit risk, liquidity risk, reputational risk, as well as operational risk, understood as the risk of direct or indirect loss, resulting from inadequate or faulty internal processes, errors of employees or systems and external events. Islamic banks may be exposed to increased credit risk, due to the application of the principle of profit and loss sharing (PLS), which is one of the pillars of Islamic finance. An analysis of the fiancial reports of the largest Islamic banks of the Arabian Peninsula shows that all supervisory boards are aware of the importance and role of an effective risk management system in reducing costs and increasing banks’ results. Most of them use the principles described by the Islamic Financial Services Board (IFSB). All banks have implemented appropriate risk management processes and policies, and have units in their structures responsible for the risk management process, which means that they apply the first IFSB principle. The institutions declare that they identify and monitor risks, and implement risk mitigation measures.


Słowa kluczowe


risk management; risk management systems; Islamic banks; Islamic banking

Pełny tekst:

PDF (English)

Bibliografia


Al Rahji Bank. (2018). Annual Report. Retrieved from: https://www.alrajhibank.com.sa/en/investor-relations/documents/al_rajhi_bank_annual_report_2018_(eng).pdf

Al Rayan Bank. (2018). Annual Report. Retrieved from: https://www.alrayanbank.co.uk/media/454140/annual-report-and-financial-statements-2018.pdf

Al-Kaber, M. (2000). Istota działalności banków islamskich. Bank i Kredyt, 6, 47-53.

Al-Kaber, M. (2013). Techniki finansowe banków islamskich. OPTIMUM. Studia Ekonomiczne, 3, 175-194.

Danecki, J. (2007). Podstawowe wiadomości o Islamie. Warszawa: Wydawnictwo Dialog.

Hussain, H., & Al-Ajmi, J. (2012). Risk management practices of conventional and Islami banks in Bahrain. The Journal of Risk Finance, 3(3), 215-239. doi:10.1108/15265941211229244

Global Finance. (2000). World’s Safest Banks. Retrieved from https://www.gfmag.com/magazine/november-2020/gcc-safest-islamic-banks

Global Islamic Economy Report. (2019). Retrieved from https://salaamgateway.com/reports/report-state-of-the-global-islamic-economy-201920

Iqbal, Z., & Mirakhor, A. (2012). An Introduction to Islamic Finance: Theory and Practice. Singapore: John Wiley & Sons (Asia) Pte. Ltd.

Islamic Financial Services Board. (2005). Guiding principles of risk management for institutions (other than insurance institutions) offering only Islamic financial services. Retrieved from: https://www.ifsb.org/published.php

Karwowski, J. (2005). Uwagi na temat bankowości islamskiej. Bank i Kredyt, 9.

Martysz, Cz. (2013). Zarys problematyki finansów islamskich. Zeszyt Naukowy Kolegium Zarządzania i Finansów, 128, 41-59.

Mikita M. (2011). Nowa era bankowości islamskiej. Przegląd Organizacji, 11, 33-35. doi:10.15290/ose.2013.03.63.11

Nowakowski, J., & Borowski, K. (2007). Finanse islamskie – wybrane zagadnienia bankowości islamskiej i islamskich rynków akcji. In J. Węcławski, P. Karpuś (eds.), Problemy rozwoju rynku finansowego w aspekcie wzrostu gospodarczego, Lublin: Wydawnictwo UMCS.

Pietrucha, J. (2010). Inne współczesne systemy hybrydowe. In: S. Swadźba (ed.), Systemy gospodarcze. Powstanie i rozwój. Katowice: Uniwersytet Ekonomiczny.

Piotrowski, D. (2014). Zastosowanie podstawowej zasady finansów islamskich PLS celem ograniczenia zjawiska moralnego hazardu na rynkach usług finansowych. Acta Universitatis Nicolai Copernici, 1, 99-113. doi: http://dx.doi.org/10.12775/AUNC_ECON.2014.006.

Rosman, R., & Rahman, A. (2015). The practice of IFSB guiding pronciples of risk management by Islamic banks: International evidence. Journal of Islamic Accounting and Business Research, 6/2,150-172. doi:10.1108/JIABR-09-2012-0058

Włodarczyk, J. (2013). Bankowość islamska i bankowość konwencjonalna – próba porównania. Studia Ekonomiczne Wydawnictwo Uniwersytetu Ekonomicznego w Katowicach, 145, 113-122.

Wróblewski, R. (2011). Zarządzanie ryzykiem w przedsiębiorstwie. Zeszyty Naukowe Uniwersytetu Przyrodniczo-Humanistycznego w Siedlcach, 90, 9-31.




DOI: http://dx.doi.org/10.17951/h.2021.55.1.19-29
Data publikacji: 2021-05-11 08:56:57
Data złożenia artykułu: 2020-01-26 21:26:18


Statystyki

Widoczność abstraktów - 81
Pobrania artykułów (od 2020-06-17) - PDF (English) - 0

Wskaźniki



Odwołania zewnętrzne

  • Brak odwołań zewnętrznych


Prawa autorskie (c) 2021 Oliwia Khalil-Oliwa

Creative Commons License
Powyższa praca jest udostępniana na lcencji Creative Commons Attribution 4.0 International License.