Advanced Search
MyIDEAS: Login to save this paper or follow this series

Risk Management In Mudharabah And Musharakah Financing Of Islamic Banks

Contents:

Author Info

  • Irawan Febianto

    ()
    (Laboratory Management Faculty of Economics (LMFE))

Abstract

The low level participation of the Islamic banks in mudharabah and musharakah financing models has become one of the problems in the development of the industry. This arrangements are unique to Islamic banking and account for its superiority over conventional banking on grounds of ethics and efficiency, but the majority of Islamic banks have limited themselves to less risky trade-financing assets, which tend to be a shorter maturity. This paper tries to analyzes why Islamic banks are reluctant to indulge in mudharabah and musharakah financing. It introduces the theoretical model of balance sheet to compare them to the practices of Islamic banking. Then this paper analyze the reasons why Islamic banks tend to avoid such financing models. In the end it explore the risk management concept that might solve the problem.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://lp3e.fe.unpad.ac.id/wpaman/201013.pdf
File Function: First version, 2007
Download Restriction: no

Bibliographic Info

Paper provided by Department of Management and Business, Padjadjaran University in its series Working Papers in Business, Management and Finance with number 201013.

as in new window
Length: 31 pages
Date of creation: Nov 2010
Date of revision: Nov 2010
Handle: RePEc:unp:wpaman:201013

Contact details of provider:
Postal: Jl. Dipati Ukur no. 35 Bandung-40132
Phone: (62)(22) 2503271 ext. 146
Fax: (62)(22) 2501977
Email:
Web page: http://lm.fe.unpad.ac.id
More information through EDIRC

Related research

Keywords: Islamic banks; profit and loss sharing arrangements; risk management;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Park, Sangkyun, 1997. "Risk-taking behavior of banks under regulation," Journal of Banking & Finance, Elsevier, vol. 21(4), pages 491-507, April.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:unp:wpaman:201013. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aldrin Herwany).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.