Investigating the relationship between the volume of funding grant and banking risk allocations in Islamic banks

الملخص EN

This paper highlights the role of Islamic banks and their important funding services and diversified products dovetailing with the Sharia principles.

Indeed, Islamic banks are witnessing such a high demand that they expanded their credit granting work.

However, doing so led to higher banking risks.

This research points out Islamic funding formulae and risks encountered and ways to overcome them.

Besides, it investigates the nature of the relationship between the expansion of Islamic banks in granting credit and allocations for banking risks.

Such an objective is achieved by reviewing Al Salam Bank Algeria, being a distinguished successful sample in Islamic banking since 2008.

Main factors to success are found out, and the financial services provided to different sectors in society are emphasized.

At the end, a case study of the bank during 2014-2019 is carried out through the descriptive and analytical approach of monetary indicators.