The Basel accords, financial turmoil and Islamic banks
Author
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 6, Issue 2 (31 Dec. 2014), pp.21-48, 28 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2014-12-31
Country of Publication
Malaysia
No. of Pages
28
Main Subjects
Financial and Accounting Sciences
Religion
Islamic Studies
Topics
- Islamic jurisprudence
- Foundations of Islamic jurisprudence
- Financial institutions
- Management
- Income
- Financing
- Profits
- Common good
- Capital
- Stockholders
- Financial guarantees
- Malaysia
- Ratio analysis
- Banking services
- Buffer inventories
- Islamic Banks
- Bank liquidity
- Basel Accords
- Financial leverage
- Financial risk
- Central Bank
- Islamic Financial Services Board
Abstract EN
The primary cause of the worldwide colossal failures of financial institutions-banks in particular-in the wake of the 2007–2008 turmoil was the heightened lure of leverage gains that led them to expand credit beyond what the volume and quality of their capital assets warranted.
The devastation led to a major policy shift in finance at the national and international levels, with a focus on capital adequacy that financial institutions must observe for their own safety as well as the wider social interest.
It was felt that a stringent and regular watch was needed to make adequacy norms work.
The Basel Committee on Banking Supervision (BCBS) developed what are known as Accords (agreements) defining capital and its adequacy for banks to limit the risks they can take within reasonable confines.
Incidentally, it is worth noting that Malaysia was in a sense preemptive in revamping its own regulatory framework.
Also, the Islamic Financial Services Board (IFSB) was alert in announcing some new standards.
This paper briefly takes stock of these developments with a view to seeing how far the Accords are needed for Islamic banks in view of the arrangements that are already in place.
American Psychological Association (APA)
Hasan, Zubair. 2014. The Basel accords, financial turmoil and Islamic banks. ISRA International Journal of Islamic Finance،Vol. 6, no. 2, pp.21-48.
https://search.emarefa.net/detail/BIM-717864
Modern Language Association (MLA)
Hasan, Zubair. The Basel accords, financial turmoil and Islamic banks. ISRA International Journal of Islamic Finance Vol. 6, no. 2 (Dec. 2014), pp.21-48.
https://search.emarefa.net/detail/BIM-717864
American Medical Association (AMA)
Hasan, Zubair. The Basel accords, financial turmoil and Islamic banks. ISRA International Journal of Islamic Finance. 2014. Vol. 6, no. 2, pp.21-48.
https://search.emarefa.net/detail/BIM-717864
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 47-48
Record ID
BIM-717864