Publication:
Risk management and derivatives in Islamic finance
Abstract
This chapter examines risk management issues in Islamic banking and finance (IBF). It describes the current state of affairs, the available risk management tools and prescribes possible solutions where there are no risk management tools currently. It focuses on four key areas within IBF. These are: (1) net worth/profit rate risk of Islamic banks; (2) risks associated with sukuk portfolios; (3) equity risks of Islamic mutual funds; and (4) exchange rate risks of Shari'ah-compliant business entities.
Keywords
Risk management , Islamic finance
Citation
Bacha, O. I. (2014).Risk management and derivatives in Islamic finance. In Mervyn K. Lewis, Mohamed Ariff & Shamsher Mohamad (Eds.), Risk and regulation of Islamic banking (pp. 283-300). Cheltenham, Glasglow: Edward Elgar Publishing Limited.
Publisher
Edward Elgar Publishing Limited
Available in physical copy only