Capital adequacy in Islamic financial institutions : do Islamic banks need more capital adequacy ?

Fatawa Question

Assalamu Alaykum Dear dr. Monzer, Islamic banks are exposed to more risk than conventional banks because they own while in the process of financing, on the other hand, they carry with them partner on the right side of the balance sheet (investment depositors) they may need more or less capital adequacy depending on the risk weight of these assets and the ability to shift risk to depositors. It is regarding the question, are capital adequacy requirements imposed on conventional banks appropriate to Islamic Banks, especially when we consider profit sharing schemes? Thanks a lot. Mohamed. Ramadan

Fatwa

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Publication Date

2009-11-04

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Banks
• Islamic jurisprudence
• Capital
• Ratio analysis
• Banking services
• Islamic Banks

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-730853

• APA
• MLA
• AMA