Contents: Preface. 1. Principles and development of Islamic finance. 2. Principles of an Islamic financial system. 3. Theory and practice of Islamic financial intermediation. 4. Corporate governance: A partnership. 5. Key stakeholders. 6. Framework for risk Analysis. 7. Balance sheet structure. 8. Income statement structure. 9. Credit risk management. 10. ALM, Liquidity and market risks. 11. Operational and Islamic banking risks. 12. Governance issues in Islamic banks. 13. Transparency and data quality. 14. Capital adequacy and Basel II. 15. The Relationship between risk analysis and bank supervision. 16. Future challenges. Bibliography. Index.
The Islamic finance is a rapidly growing part of the financial sector in the world. Indeed, it is not restricted to Islamic countries and is spreading wherever there is a sizable Muslim community. More recently, it has caught the attention of conventional financial markets as well. According to some estimates, more than 250 financial institutions in over 45 countries practice some form of Islamic finance, and the industry has been growing at a rate of more than 15 percent annually for the past five years. The markets current annual turnover is estimated to be $350 billion, compared with a mere $5 billion in 1985.