A RISK SHARING BANKING MODEL OBIYATHULLA

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

Bacha Ismath; Mirakhor Abbas

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Seminar Paper

Paper Information

Seminar: ANNUAL ISLAMIC BANKING CONFERENCE
Year:2015 | Issue:26

Download Full-Text

View:

100

Download:

113

Information Seminar Paper

Title

A RISK SHARING BANKING MODEL OBIYATHULLA

Author(s)

Bacha Ismath | Mirakhor Abbas

Keywords

Not Registered.

Abstract

ISLAMIC BANKING HAS THUS FAR MIMICKED CONVENTIONAL BANKING WITH THE RESULT THAT THE SAME PROBLEMS AND OUTCOMES HAVE SURFACED, EVEN THOUGH IT IS OPERATING WITHIN AN INTEREST FREE FRAMEWORK. THIS APPARENT “CONVERGENCE” HAS LED TO DISAFFECTION BOTH AMONG CONSUMERS OF ISLAMIC BANKING SERVICES AND POLICY MAKERS. THIS PAPER PROPOSES A RISK SHARING MODEL FOR ISLAMIC BANKS THAT CAN POTENTIALLY PULL ISLAMIC BANKING AWAY FROM THIS PATH DEPENDENCY. UNDER THE PROPOSAL AN ISLAMIC BANK’S ASSETS WOULD BE SECURITIZED BY THE ISSUANCE OF SUKUK TYPE INSTRUMENTS THAT HAVE THE SAME UNDERLYING CONTRACT AND AVERAGE “DURATION” AS CUSTOMER FINANCING. SMALL ASSETS MAY HAVE TO BE POOLED INTO TRANCHES OF SIMILAR MATURITY BEFORE BEING SECURITIZED. MEDIUM AND LARGER ASSETS WOULD HAVE PAPERS ISSUED DIRECTLY AGAINST THEM. THUS, INSTEAD OF DEPOSITORS, AN ISLAMIC BANK WOULD HAVE THOUSANDS OF SUKUK HOLDERS, ALL OF WHOM SHARE THE PROFITS AND LOSSES ARISING FROM THEIR RESPECTIVE TAGGED ASSET. OTHER THAN WADIAH BASED SAFE CUSTODY ACCOUNTS AND CURRENT ACCOUNTS AGAINST WHICH THE BANK HOLDS CASH, ALL OTHER DEPOSITORS WOULD BE “SOLD” SUKUK FOR THE AMOUNT, DURATION AND RISK LEVEL THAT THEY PREFER. THE MODEL HAS SEVERAL ADVANTAGES SUCH AS, MINIMIZING SYSTEMIC RISK THROUGH RISK DISSIPATION AND REDUCING THE LIQUIDITY MISMATCH INHERENT TO BANKING. THE SECURITIZED PAPERS PROVIDE NEW LIQUIDITY INSTRUMENTS AND CAN ENHANCE LIQUIDITY WITHIN THE ISLAMIC FINANCE SECTOR. WHERE THE MACRO ECONOMY IS CONCERNED, THE PROPOSAL ENHANCES SYSTEM STABILITY BY REDUCING RISK CONCENTRATION WITHIN THE BANKING SYSTEM, SUBSTANTIALLY WIDEMING FINANCIAL INCLUSION BY WAY OF SMALL DENOMINATION SUKUK AND MINIMIZES THE CONTINGENT LIABILITIES OF GOVERNMENTS BY AVOIDING THE USE OF DEPOSIT INSURANCE.

Cites

No record.

References

No record.

Cite

APA: Copy

Bacha, Ismath, & Mirakhor, Abbas. (2015). A RISK SHARING BANKING MODEL OBIYATHULLA. ANNUAL ISLAMIC BANKING CONFERENCE. SID. https://sid.ir/paper/920312/en

Vancouver: Copy

Bacha Ismath, Mirakhor Abbas. A RISK SHARING BANKING MODEL OBIYATHULLA. 2015. Available from: https://sid.ir/paper/920312/en

IEEE: Copy

Ismath Bacha, and Abbas Mirakhor, “A RISK SHARING BANKING MODEL OBIYATHULLA,” presented at the ANNUAL ISLAMIC BANKING CONFERENCE. 2015, [Online]. Available: https://sid.ir/paper/920312/en

Related Journal Papers

No record.

Related Seminar Papers

No record.

Related Plans

No record.

Recommended Workshops