Islamic bank failure : a case study
Author
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 2, Issue 1 (30 Jun. 2010), pp.7-34, 28 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2010-06-30
Country of Publication
Malaysia
No. of Pages
28
Main Subjects
Economy and Commerce
Financial and Accounting Sciences
Religion
Islamic Studies
Topics
- Islamic jurisprudence
- Financial crises
- Financing
- Accounting
- Financial statements
- Debt repayment
- Debts
- Loans
- Auditing
- Risk management
- Administrative control
- Accountants
- Southern Africa
- Bank deposits
- Banking services
- Credit risk
- Islamic Banks
- Bank liquidity
Abstract EN
Recent turmoil in financial markets has once again emphasised the need for regulatory vigilance–especially in relation to banks in distress and those experiencing a run on depositors’ funds.
The Islamic Bank Ltd of South Africa collapsed in 1997, and its failure exposed the cost of bad credit risk management, operational dysfunction and regulatory breaches.
This study finds early regulatory intervention may have addressed major liquidity shortcomings and perhaps even forestalled the bank’s collapse.
Despite effective intervention measures, the evidence shows a run on funds fuelled by noise and loss of confidence is difficult to reverse without direct and significant central bank liquidity infusion and deposit guarantees.
Evidence of poor management and dereliction of duty by external auditors to report on material irregularities reinforces the need for a new wholeof- regulatory approach.
Further, Shariah compliance is found to be ineffectual without substantive legal support.
American Psychological Association (APA)
Nathie, Mahmud. 2010. Islamic bank failure : a case study. ISRA International Journal of Islamic Finance،Vol. 2, no. 1, pp.7-34.
https://search.emarefa.net/detail/BIM-717598
Modern Language Association (MLA)
Nathie, Mahmud. Islamic bank failure : a case study. ISRA International Journal of Islamic Finance Vol. 2, no. 1 (Jun. 2010), pp.7-34.
https://search.emarefa.net/detail/BIM-717598
American Medical Association (AMA)
Nathie, Mahmud. Islamic bank failure : a case study. ISRA International Journal of Islamic Finance. 2010. Vol. 2, no. 1, pp.7-34.
https://search.emarefa.net/detail/BIM-717598
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 31-34
Record ID
BIM-717598