Ch04
•Download as PPT, PDF•
1 like•989 views
This document discusses forces reshaping the financial system, including financial innovation, deregulation, globalization, an aging population, and technological advances. It explores challenges like managing risk, adapting to new technologies, and increased competition. Regulation approaches are also examined, like the single regulator model. The future of payments systems and ongoing need for some regulations are also considered.
Report
Share
Report
Share
Recommended
ISLAMIC ACCOUNTING PRACTICES - THE IMPORTANCE OF ISLAMIC CAPITAL MARKET IN MA...
ISLAMIC ACCOUNTING PRACTICES - THE IMPORTANCE OF ISLAMIC CAPITAL MARKET IN MA...Nur Adillah Arifah Nazri
Capital markets are an important component of the financial system for raising funds for long-term investment. They provide opportunities for diversification of risk through cross-sectional risk sharing. The long-term investments are facilitated through a series of short-term contracts in the form of tradable securities enabling the investors an opportunity to exit or enter through trade. Thus they provide an element of liquidity to the otherwise illiquid assets. The secondary market also provides pricing and valuation of assets on a continued basis thus eliminating arbitrage and inefficienciesDevelopment of the Malaysian Islamic Financial System
This document discusses the development of the Malaysian Islamic financial system. It covers:
1) The historical development of Islamic banking in Malaysia, from the establishment of Lembaga Tabung Haji in 1963 to the passing of the Islamic Banking Act in 1983 which allowed the creation of Bank Islam Malaysia, the country's first Islamic bank.
2) The three phases of development - the first phase focused on establishing the necessary legal and regulatory framework; the second phase expanded the system to include more Islamic financial institutions; the third phase further developed Islamic capital markets.
3) Key milestones and regulations that helped grow the system, such as the Government Investment Act which allowed Shariah-compliant short-term
The History of Islamic Bank - Chap 1 (Islamic Banking)
This is the first chapter of Islamic Banking course (FAB 1233), Astin College, Puchong. Using the book of Islamic Finance and Banking system by Sudin Haron and Wan Nursofiza Wan Azmi as the main reference.
Corporate governance
The document discusses the Shariah governance framework for Islamic financial institutions established by Bank Negara Malaysia (BNM). It outlines that BNM places great importance on ensuring the Islamic financial system operates according to Shariah principles. This is achieved through a two-tier Shariah governance structure comprising a central Shariah advisory body at BNM and internal Shariah committees at each Islamic financial institution. The framework sets expectations for institutions' Shariah governance structures and processes to ensure operations comply with Shariah. It enhances the roles and responsibilities of boards, Shariah committees, and management in Shariah matters.
INTERNATIONAL ISLAMIC FINANCIAL MARKET (IIFM)
IIFM is an international standards-setting body for the Islamic finance industry that focuses on standardizing Islamic financial contracts and products. It works to unify the market by developing best practices at the global level and harmonizing Shari'ah interpretations. IIFM has published several standards, including master agreements for treasury placement, hedging products, and collateralized murabahah agreements, to facilitate standardized documentation for liquidity management, risk management, and access to liquidity. IIFM standards aim to support a sustainable development of the Islamic finance industry globally.
Shariah Non-Compliance Risk
This document discusses Shariah non-compliance risk in Islamic finance. It begins by defining Shariah non-compliance risk as the risk arising from a failure of Islamic banks to comply with Shariah rules and principles as determined by their Shariah boards. This can result in contracts being cancelled and income not being recognized. The document then outlines various measures that can be taken to manage this risk, such as ensuring contracts are structured to fulfill the pillars of a valid Islamic contract. Several examples of potential Shariah non-compliance in contracts like tawarruq, mudharabah and istisna' are also provided.
Financial Analysis on Maybank and CIMB (Bank Management)
This document provides an analysis of the financial performance of Maybank and CIMB from 2010-2014. Key metrics analyzed include liquidity, profitability, financial leverage, and asset quality. For liquidity, the analysis found that Maybank's current ratio increased from 2010-2014 while CIMB's decreased, indicating weaker liquidity. For profitability, ratios for both banks fluctuated over the period. Maybank generally had higher ratios except for earnings to assets in 2012. The analysis found CIMB had higher financial leverage than Maybank based on debt to equity ratios, though both lowered leverage in 2014. In terms of asset quality, Maybank's non-performing loan ratio was stable at 1% while CIM
Recommended
ISLAMIC ACCOUNTING PRACTICES - THE IMPORTANCE OF ISLAMIC CAPITAL MARKET IN MA...
ISLAMIC ACCOUNTING PRACTICES - THE IMPORTANCE OF ISLAMIC CAPITAL MARKET IN MA...Nur Adillah Arifah Nazri
Capital markets are an important component of the financial system for raising funds for long-term investment. They provide opportunities for diversification of risk through cross-sectional risk sharing. The long-term investments are facilitated through a series of short-term contracts in the form of tradable securities enabling the investors an opportunity to exit or enter through trade. Thus they provide an element of liquidity to the otherwise illiquid assets. The secondary market also provides pricing and valuation of assets on a continued basis thus eliminating arbitrage and inefficienciesDevelopment of the Malaysian Islamic Financial System
This document discusses the development of the Malaysian Islamic financial system. It covers:
1) The historical development of Islamic banking in Malaysia, from the establishment of Lembaga Tabung Haji in 1963 to the passing of the Islamic Banking Act in 1983 which allowed the creation of Bank Islam Malaysia, the country's first Islamic bank.
2) The three phases of development - the first phase focused on establishing the necessary legal and regulatory framework; the second phase expanded the system to include more Islamic financial institutions; the third phase further developed Islamic capital markets.
3) Key milestones and regulations that helped grow the system, such as the Government Investment Act which allowed Shariah-compliant short-term
The History of Islamic Bank - Chap 1 (Islamic Banking)
This is the first chapter of Islamic Banking course (FAB 1233), Astin College, Puchong. Using the book of Islamic Finance and Banking system by Sudin Haron and Wan Nursofiza Wan Azmi as the main reference.
Corporate governance
The document discusses the Shariah governance framework for Islamic financial institutions established by Bank Negara Malaysia (BNM). It outlines that BNM places great importance on ensuring the Islamic financial system operates according to Shariah principles. This is achieved through a two-tier Shariah governance structure comprising a central Shariah advisory body at BNM and internal Shariah committees at each Islamic financial institution. The framework sets expectations for institutions' Shariah governance structures and processes to ensure operations comply with Shariah. It enhances the roles and responsibilities of boards, Shariah committees, and management in Shariah matters.
INTERNATIONAL ISLAMIC FINANCIAL MARKET (IIFM)
IIFM is an international standards-setting body for the Islamic finance industry that focuses on standardizing Islamic financial contracts and products. It works to unify the market by developing best practices at the global level and harmonizing Shari'ah interpretations. IIFM has published several standards, including master agreements for treasury placement, hedging products, and collateralized murabahah agreements, to facilitate standardized documentation for liquidity management, risk management, and access to liquidity. IIFM standards aim to support a sustainable development of the Islamic finance industry globally.
Shariah Non-Compliance Risk
This document discusses Shariah non-compliance risk in Islamic finance. It begins by defining Shariah non-compliance risk as the risk arising from a failure of Islamic banks to comply with Shariah rules and principles as determined by their Shariah boards. This can result in contracts being cancelled and income not being recognized. The document then outlines various measures that can be taken to manage this risk, such as ensuring contracts are structured to fulfill the pillars of a valid Islamic contract. Several examples of potential Shariah non-compliance in contracts like tawarruq, mudharabah and istisna' are also provided.
Financial Analysis on Maybank and CIMB (Bank Management)
This document provides an analysis of the financial performance of Maybank and CIMB from 2010-2014. Key metrics analyzed include liquidity, profitability, financial leverage, and asset quality. For liquidity, the analysis found that Maybank's current ratio increased from 2010-2014 while CIMB's decreased, indicating weaker liquidity. For profitability, ratios for both banks fluctuated over the period. Maybank generally had higher ratios except for earnings to assets in 2012. The analysis found CIMB had higher financial leverage than Maybank based on debt to equity ratios, though both lowered leverage in 2014. In terms of asset quality, Maybank's non-performing loan ratio was stable at 1% while CIM
Legal Framework of Islamic Capital Market
The document discusses the legal framework of Islamic capital markets. It provides an overview of key concepts like Islamic capital market products, regulatory bodies that govern the Malaysian capital market, and the development of the Islamic capital market in Malaysia over time. Various regulatory frameworks and guidelines introduced by the Securities Commission are also summarized to facilitate a conducive environment for the growth of the Islamic capital market.
IFSB Guiding Principles of Risk Management
This document discusses risk management principles for Islamic finance as outlined by the Islamic Financial Services Board (IFSB). It provides an overview of the IFSB's objectives to promote prudent and transparent Islamic financial services through international standards. The key risks for Islamic financial institutions are identified as equity investment, rate of return, displaced commercial, operational, and Shariah compliance risks. The document outlines guiding principles for managing each of these risks, focusing on credit, market, liquidity, and operational risks. The principles emphasize comprehensive risk management and reporting processes, Shariah compliance, and protecting the interests of fund providers.
Shift to Islamic Banking
Short look at the requirement for developing a structure for Islamic Bank, moving away from the conventional bank requirements. Outlines the various structures available such as Islamic Banking Windows, Islamic Banking Subsidiary and Islamic Banks
enterpreneurship Chapter 7
1) The document discusses different types of business support systems including personal funds, family funds, banks, and other financial institutions. It also describes sole proprietorships and partnerships.
2) Marketing aims to identify and meet customer needs to maintain profitability. It can be carried out through various methods.
3) Banks act as intermediaries between parties providing funds and help expedite payment transactions. They review the "5Cs" - character, capacity, capital, conditions, and collateral before approving loans.
Displaced Commercial Risk
This document discusses displaced commercial risk in Islamic finance. It defines displaced commercial risk as the risk resulting from volatility in returns generated by assets financed by investment accounts, which can cause Islamic banks to not pay competitive rates compared to conventional banks. The document outlines ways Islamic banks can manage this risk, including using profit equalization reserves and investment risk reserves. It also discusses the impact of displaced commercial risk mitigation on Islamic banks and their customers and the overall economy.
Chapter 2 Shariah Stock Screening
The document discusses Shariah screening methodology for classifying stocks as compliant or non-compliant. It outlines the screening process in Malaysia, which involves business activity and financial ratio benchmarks determined by the Securities Commission Shariah Advisory Council. The benchmarks have been revised, and could impact status of some mixed-business companies. The justification for the benchmarks is also discussed, drawing from Islamic legal principles around permissible levels of prohibited elements in items or businesses.
Chapter 5 Islamic Equities Market
This document discusses Islamic investment in equities markets. It begins by outlining the types of securities, including common stock and preferred stock. Common stock represents ownership in a company and provides rights to dividends and voting. Preferred stock has limited voting rights but priority claim to dividends. The document then examines the underlying Shariah contract of stocks, which is based on principles of Musharakah profit and loss sharing. While common stock is generally permissible, preferred stock faces restrictions. The document concludes by discussing various ways shareholders can be rewarded, such as cash dividends, bonus issues, and rights issues, all of which can be compliant with Shariah perspectives.
Rate of Return Risk
This document discusses rate of return risk in Islamic finance. It defines rate of return risk as the potential impact of changes in market rates of return on an Islamic bank's net income or equity value. Rate of return risk exists for Islamic banks because they use conventional interest rates as benchmarks, exposing them mismatch risk between asset and liability rates. The document outlines various techniques Islamic banks can use to manage this risk, such as diversifying assets, securitization, and off-balance sheet hedging methods. Managing rate of return risk is important for Islamic bank profitability and competitiveness.
Business finance Chapter1 - Finance management
This document contains information about the duties of a financial manager and an overview of financial markets. It discusses that a financial manager's duties include monitoring and controlling finances, reviewing budgets, ensuring accurate financial reporting, and overseeing compliance. It also provides details about different types of financial markets, the securities traded in them, and participants that provide or obtain funds. Money markets facilitate short-term lending while capital markets focus on long-term financing. Primary markets issue new securities and secondary markets trade existing financial assets.
Islamic economy
The economic system of Islam is regulated by the Quran and forbids activities like interest accumulation and speculation. Its main features include prohibiting riba (usury), not producing forbidden goods, allowing private ownership allocated accordingly, and requiring government approval. The goal is to achieve Al Falah. Advantages include banks not charging interest on loans but instead profit-sharing, and forbidding unfair practices. Disadvantages include not benefiting from falling interest rates and potential incoherence from interpretations leading to fraud and non-payment issues hindering growth.
What is Shariah Audit
This document discusses shariah audits of Islamic businesses. It describes that a shariah audit involves an unbiased examination of all aspects of a business according to Islamic law. The benefits of a shariah audit include increased productivity and profits by minimizing expenses and employee turnover. A shariah audit also pleases Allah by avoiding disobedience in business practices. The audit process involves signing an NDA, collecting policy documents, discussing policies with management, providing alternative Islamic solutions, and training employees. Examples of issues found include profit distribution ratios and sales practices. The compensation for a shariah audit is an investment that provides knowledge and is considered a ongoing charity.
Mgt soalan latihan
The document discusses several topics related to management and planning. It defines key terms like planning, types of plans, and strategic management. It also contrasts management levels, describes manager roles and skills, and discusses challenges facing modern managers like total quality management, workforce diversity, globalization, and entrepreneurship.
Risk Mitigation in Islamic Banking
This document discusses various techniques for mitigating risk in Islamic banking. It begins by explaining how Islamic finance prohibits separating ownership from risk like conventional interest-based loans. It then discusses several key risks like credit risk and how Islamic banks estimate expected losses. It provides details on techniques for mitigating different types of risk, including using loan loss reserves, collateral, contracts, partnerships, murabahah structures, salam, parallel salam and sukuk structures. The goal is to encourage risk sharing over risk transferring in accordance with Islamic principles.
Fundamental of Islamic Banking - Framework of Islamic Financial System
This document provides an overview of the development of Islamic banking and finance in Malaysia. It discusses the historical milestones and stages of development of Islamic banking, takaful (Islamic insurance), the Islamic capital market, and the roles of the Shariah Advisory Council and Labuan International Offshore Financial Centre in developing the Islamic financial system. The framework established in Malaysia has served as a model for the development of comprehensive Islamic financial systems internationally.
The importance of shari’ah governance
This document provides background information on Affin Islamic Bank Berhad (AIBB), including its establishment, key milestones, and importance of Shariah governance. It discusses differences between Shariah and corporate governance as well as the roles and qualifications of a Shariah board. The document outlines AIBB's Shariah governance structure, including its Shariah committee and management team. It also notes some crucial issues in Islamic financial institutions regarding female Shariah board members and transparency.
chapter 4 finance companies and investment banks
Finance companies and investment banks play important roles in Malaysia's financial system. Finance companies are defined as institutions that provide lending and leasing services. They are the second largest deposit-taking institutions and are regulated by guidelines on reserves and lending. Investment banks help companies raise funds through public offerings, provide advisory services for mergers and acquisitions, and facilitate trading of securities. Both finance companies and investment banks expand access to credit and investment opportunities.
Bab 2 Etika Islam dalam Ekonomi
Dokumen tersebut membahas tentang etika Islam dalam ekonomi, termasuk empat faktor utama sistem ekonomi Islam yaitu ketuhanan, etika, kemanusiaan, dan sikap pertengahan. Juga dibahas mengenai hubungan antara agama Islam dengan aktivitas ekonomi."[/ringkuman]
Risk management in islamic banking
This document discusses risk management in Islamic banking. It begins with definitions of risk management and describes the risk management process. It then outlines the major risks faced by both Islamic and conventional banks, as well as unique risks faced only by Islamic banks. The document discusses the Shariah perspective on risk, as well as tools for risk mitigation and measurement. It provides guidance principles from Basel, IFSB, and other organizations and discusses challenges in capturing unique risks of Islamic banking. It concludes with ten rules of risk management and a word of caution about managing risks in life.
BAFIA 1989 & CBA 2009
This document discusses the legal framework for Islamic banking and finance in Malaysia. It outlines key laws such as the Banking and Financial Institution Act 1989 and the Central Bank of Malaysia Act 2009 that provide the regulations for Islamic banking business and recognize Malaysia's dual financial system of conventional and Islamic finance. The document also describes the establishment of the Shariah Advisory Council and its important role in ensuring Islamic banking and financial operations comply with Shariah principles.
Fee and Commission Management in Global Markets
Look at key trends, challenges and solutions in fee and commission management. The challenge for any global financial institution is the sheer complexity and number of relationships and fees. The ongoing financial crisis has intensified the need for transparency and risk reduction. Explore the potential benefits of automation of commission and fees management and consider ways to quantify costs savings and other gains.
Power point presentation
This document summarizes a presentation on financial innovation. It defines financial innovation as new approaches to financial circumstances, including new types of securities or money management strategies. Financial innovation occurs due to changing times and risks, advances in technology, and competition among institutions. The document outlines different types of financial innovations like system/institutional innovations that affect the whole sector, process innovations for efficiency, and product innovations. It provides examples of recent innovations in various countries like agent banking, mobile payments, and diversification of financial providers. The advantages are meeting cash budgets and overseeing expenses, while disadvantages include difficulties understanding shifts in financial systems.
More Related Content
What's hot
Legal Framework of Islamic Capital Market
The document discusses the legal framework of Islamic capital markets. It provides an overview of key concepts like Islamic capital market products, regulatory bodies that govern the Malaysian capital market, and the development of the Islamic capital market in Malaysia over time. Various regulatory frameworks and guidelines introduced by the Securities Commission are also summarized to facilitate a conducive environment for the growth of the Islamic capital market.
IFSB Guiding Principles of Risk Management
This document discusses risk management principles for Islamic finance as outlined by the Islamic Financial Services Board (IFSB). It provides an overview of the IFSB's objectives to promote prudent and transparent Islamic financial services through international standards. The key risks for Islamic financial institutions are identified as equity investment, rate of return, displaced commercial, operational, and Shariah compliance risks. The document outlines guiding principles for managing each of these risks, focusing on credit, market, liquidity, and operational risks. The principles emphasize comprehensive risk management and reporting processes, Shariah compliance, and protecting the interests of fund providers.
Shift to Islamic Banking
Short look at the requirement for developing a structure for Islamic Bank, moving away from the conventional bank requirements. Outlines the various structures available such as Islamic Banking Windows, Islamic Banking Subsidiary and Islamic Banks
enterpreneurship Chapter 7
1) The document discusses different types of business support systems including personal funds, family funds, banks, and other financial institutions. It also describes sole proprietorships and partnerships.
2) Marketing aims to identify and meet customer needs to maintain profitability. It can be carried out through various methods.
3) Banks act as intermediaries between parties providing funds and help expedite payment transactions. They review the "5Cs" - character, capacity, capital, conditions, and collateral before approving loans.
Displaced Commercial Risk
This document discusses displaced commercial risk in Islamic finance. It defines displaced commercial risk as the risk resulting from volatility in returns generated by assets financed by investment accounts, which can cause Islamic banks to not pay competitive rates compared to conventional banks. The document outlines ways Islamic banks can manage this risk, including using profit equalization reserves and investment risk reserves. It also discusses the impact of displaced commercial risk mitigation on Islamic banks and their customers and the overall economy.
Chapter 2 Shariah Stock Screening
The document discusses Shariah screening methodology for classifying stocks as compliant or non-compliant. It outlines the screening process in Malaysia, which involves business activity and financial ratio benchmarks determined by the Securities Commission Shariah Advisory Council. The benchmarks have been revised, and could impact status of some mixed-business companies. The justification for the benchmarks is also discussed, drawing from Islamic legal principles around permissible levels of prohibited elements in items or businesses.
Chapter 5 Islamic Equities Market
This document discusses Islamic investment in equities markets. It begins by outlining the types of securities, including common stock and preferred stock. Common stock represents ownership in a company and provides rights to dividends and voting. Preferred stock has limited voting rights but priority claim to dividends. The document then examines the underlying Shariah contract of stocks, which is based on principles of Musharakah profit and loss sharing. While common stock is generally permissible, preferred stock faces restrictions. The document concludes by discussing various ways shareholders can be rewarded, such as cash dividends, bonus issues, and rights issues, all of which can be compliant with Shariah perspectives.
Rate of Return Risk
This document discusses rate of return risk in Islamic finance. It defines rate of return risk as the potential impact of changes in market rates of return on an Islamic bank's net income or equity value. Rate of return risk exists for Islamic banks because they use conventional interest rates as benchmarks, exposing them mismatch risk between asset and liability rates. The document outlines various techniques Islamic banks can use to manage this risk, such as diversifying assets, securitization, and off-balance sheet hedging methods. Managing rate of return risk is important for Islamic bank profitability and competitiveness.
Business finance Chapter1 - Finance management
This document contains information about the duties of a financial manager and an overview of financial markets. It discusses that a financial manager's duties include monitoring and controlling finances, reviewing budgets, ensuring accurate financial reporting, and overseeing compliance. It also provides details about different types of financial markets, the securities traded in them, and participants that provide or obtain funds. Money markets facilitate short-term lending while capital markets focus on long-term financing. Primary markets issue new securities and secondary markets trade existing financial assets.
Islamic economy
The economic system of Islam is regulated by the Quran and forbids activities like interest accumulation and speculation. Its main features include prohibiting riba (usury), not producing forbidden goods, allowing private ownership allocated accordingly, and requiring government approval. The goal is to achieve Al Falah. Advantages include banks not charging interest on loans but instead profit-sharing, and forbidding unfair practices. Disadvantages include not benefiting from falling interest rates and potential incoherence from interpretations leading to fraud and non-payment issues hindering growth.
What is Shariah Audit
This document discusses shariah audits of Islamic businesses. It describes that a shariah audit involves an unbiased examination of all aspects of a business according to Islamic law. The benefits of a shariah audit include increased productivity and profits by minimizing expenses and employee turnover. A shariah audit also pleases Allah by avoiding disobedience in business practices. The audit process involves signing an NDA, collecting policy documents, discussing policies with management, providing alternative Islamic solutions, and training employees. Examples of issues found include profit distribution ratios and sales practices. The compensation for a shariah audit is an investment that provides knowledge and is considered a ongoing charity.
Mgt soalan latihan
The document discusses several topics related to management and planning. It defines key terms like planning, types of plans, and strategic management. It also contrasts management levels, describes manager roles and skills, and discusses challenges facing modern managers like total quality management, workforce diversity, globalization, and entrepreneurship.
Risk Mitigation in Islamic Banking
This document discusses various techniques for mitigating risk in Islamic banking. It begins by explaining how Islamic finance prohibits separating ownership from risk like conventional interest-based loans. It then discusses several key risks like credit risk and how Islamic banks estimate expected losses. It provides details on techniques for mitigating different types of risk, including using loan loss reserves, collateral, contracts, partnerships, murabahah structures, salam, parallel salam and sukuk structures. The goal is to encourage risk sharing over risk transferring in accordance with Islamic principles.
Fundamental of Islamic Banking - Framework of Islamic Financial System
This document provides an overview of the development of Islamic banking and finance in Malaysia. It discusses the historical milestones and stages of development of Islamic banking, takaful (Islamic insurance), the Islamic capital market, and the roles of the Shariah Advisory Council and Labuan International Offshore Financial Centre in developing the Islamic financial system. The framework established in Malaysia has served as a model for the development of comprehensive Islamic financial systems internationally.
The importance of shari’ah governance
This document provides background information on Affin Islamic Bank Berhad (AIBB), including its establishment, key milestones, and importance of Shariah governance. It discusses differences between Shariah and corporate governance as well as the roles and qualifications of a Shariah board. The document outlines AIBB's Shariah governance structure, including its Shariah committee and management team. It also notes some crucial issues in Islamic financial institutions regarding female Shariah board members and transparency.
chapter 4 finance companies and investment banks
Finance companies and investment banks play important roles in Malaysia's financial system. Finance companies are defined as institutions that provide lending and leasing services. They are the second largest deposit-taking institutions and are regulated by guidelines on reserves and lending. Investment banks help companies raise funds through public offerings, provide advisory services for mergers and acquisitions, and facilitate trading of securities. Both finance companies and investment banks expand access to credit and investment opportunities.
Bab 2 Etika Islam dalam Ekonomi
Dokumen tersebut membahas tentang etika Islam dalam ekonomi, termasuk empat faktor utama sistem ekonomi Islam yaitu ketuhanan, etika, kemanusiaan, dan sikap pertengahan. Juga dibahas mengenai hubungan antara agama Islam dengan aktivitas ekonomi."[/ringkuman]
Risk management in islamic banking
This document discusses risk management in Islamic banking. It begins with definitions of risk management and describes the risk management process. It then outlines the major risks faced by both Islamic and conventional banks, as well as unique risks faced only by Islamic banks. The document discusses the Shariah perspective on risk, as well as tools for risk mitigation and measurement. It provides guidance principles from Basel, IFSB, and other organizations and discusses challenges in capturing unique risks of Islamic banking. It concludes with ten rules of risk management and a word of caution about managing risks in life.
BAFIA 1989 & CBA 2009
This document discusses the legal framework for Islamic banking and finance in Malaysia. It outlines key laws such as the Banking and Financial Institution Act 1989 and the Central Bank of Malaysia Act 2009 that provide the regulations for Islamic banking business and recognize Malaysia's dual financial system of conventional and Islamic finance. The document also describes the establishment of the Shariah Advisory Council and its important role in ensuring Islamic banking and financial operations comply with Shariah principles.
What's hot (20)
Fundamental of Islamic Banking - Framework of Islamic Financial System
Fundamental of Islamic Banking - Framework of Islamic Financial System
Similar to Ch04
Fee and Commission Management in Global Markets
Look at key trends, challenges and solutions in fee and commission management. The challenge for any global financial institution is the sheer complexity and number of relationships and fees. The ongoing financial crisis has intensified the need for transparency and risk reduction. Explore the potential benefits of automation of commission and fees management and consider ways to quantify costs savings and other gains.
Power point presentation
This document summarizes a presentation on financial innovation. It defines financial innovation as new approaches to financial circumstances, including new types of securities or money management strategies. Financial innovation occurs due to changing times and risks, advances in technology, and competition among institutions. The document outlines different types of financial innovations like system/institutional innovations that affect the whole sector, process innovations for efficiency, and product innovations. It provides examples of recent innovations in various countries like agent banking, mobile payments, and diversification of financial providers. The advantages are meeting cash budgets and overseeing expenses, while disadvantages include difficulties understanding shifts in financial systems.
Banking and Financial Institutions- The Latest Updates.pptx
From the dynamic world of banking to the cutting-edge trends in dealer finance and factoring, the financial industry is experiencing a whirlwind of changes that are shaping its present and future. In this blog, we delve into the intricate web of factors influencing financial institutions, exploring the latest updates, regulatory changes, and emerging opportunities that are redefining the way we perceive and interact with finance.
Visit: https://m1nxt.blogspot.com/2023/11/banking-and-financial-institutions.html
Financial Crime: How Financial Institutions Can Mitigate Risk and Improve Com...
Banks face increasing costs and complexity due to rising financial crimes and regulations. They have traditionally handled risks like money laundering and fraud separately, but this fragmented approach is ineffective. The document recommends that banks integrate efforts across disciplines, improve data quality and analytics, foster a culture of compliance, and collaborate on industry-wide initiatives to more effectively manage financial crime risks.
Our global capabilities: financial services
Grant Thornton provides audit, tax, and advisory services to financial institutions globally. It has over $300 million in combined global revenues from financial services. The document discusses challenges facing the financial services industry such as increased regulation, competition, and need for transparency. It also outlines Grant Thornton's solutions to help clients address issues like regulatory compliance, risk management, growth strategies, and data management.
The Financial Services Sector.pdf
The financial services sector is a critical component of modern economies, enabling individuals, businesses, and governments to manage and allocate financial resources efficiently. However, this sector also faces significant challenges, including increasing competition, regulatory pressures, and technological disruption. This article provides an overview of the financial services sector, including its importance, challenges, and opportunities.
#FinTech Regulation Overview co-presented
This Seminar will initiate a reflection regarding the extent to which innovation within the Financial Technology (FinTech) sector can and should be regulated.
The case will be illustrated with examples of the UK and EU market (e.g. the Financial Conduct Authority (FCA)’s Project ‘Innovate’ and the European Commission’s Single European Payment Area (SEPA)) and the implications for innovation will be discussed.
This will be complemented by introducing an Asian perspective as to the capacity of specific jurisdictions to frame and catalyse innovation, focusing on specific challenges and opportunities in Mainland China and Hong Kong.
Buy-Side System Requirements
In the last few years, the financial markets have undergone dramatic change. While some of this is down to natural evolution, much of the change can be directly attributed to new rules introduced in the wake of the 2007 crisis. Regulators, legislators and central bank governors have been determined to avert another bubble bursting or an unexpected event that could threaten markets. Lawmakers have targeted key financial practices for reform, radically altering the expectations and behavior of industry participants. The combination of the Dodd-Frank Act, European Markets Infrastructure Regulation (EMIR), MiFID ll and Basel lll signify the biggest regulatory change in decades. These reforms have resulted in major change to how financial products are traded, settled, collateralized and reported, resulting in deep and ongoing structural changes to the markets.
There is no doubt that these new rules are directly impacting buy-side firms — be they asset managers, hedge funds, insurance companies or pension funds. But while the changes have certainly brought challenges, they have also brought opportunities. Firms that can proactively evaluate structural and operational dislocations in the marketplace and tailor business models to leverage the opportunities while addressing the challenges will be in the best position to stand apart from their competitors. Revised business models call for revisions to supporting processes and systems. Buy-side firms should look to re-architect their processes and technology infrastructure, with a goal to strengthen risk control and oversight, enhance transparency and improve efficiency of front-to-back office control functions.
The credit crisis, and the regulatory response it spawned have fundamentally reshaped financial markets for buy-side firms. But while the changes have brought about challenges, they have also ushered in opportunities. The key to success will be the speed with which firms are able to understand the changing marketplace and adapt their business models to align with the changes.
2015 Consumer Policy Agenda
This policy agenda, created by a coalition of consumer advocacy organizations, is intended to shape the policy objectives of the 114th Congress.
Be
This document discusses the importance of managers understanding an organization's internal and external environment. It explains that the internal environment involves an organization's resources and operations, while the external environment consists of outside forces like competitors, technologies, policies, and customer that can impact the organization. The document emphasizes that globalization has increased opportunities for organizations but also challenges for managers to deal with changing markets, cultures, and technologies across borders.
Fintech and market structure in financial services: Market developments and p...
This document summarizes the potential impacts of financial technology (FinTech) and large technology firms (BigTech) on market structure and financial stability. Some key points:
1) FinTech and BigTech could significantly alter the universe of financial services providers and the degree of competition and concentration in markets through new entrants.
2) While competition may benefit consumers, it could also put pressure on incumbent firms' profitability and lead to increased risk-taking.
3) BigTech firms in particular may achieve large market shares quickly due to existing customer networks, data advantages, and ability to subsidize financial services.
4) Increased reliance on third-party cloud and data providers could introduce new systemic risks if
Microfinance: Yesterday, Today, and Tomorrow: What is the Next Best Practices
Microfinance has evolved from a risky activity provided by non-profits to a mainstream part of the formal financial system. A supportive regulatory environment established rules for banks to engage in microfinance and manage risks. Today, microfinance offers a wider range of services through more providers and channels. However, increased competition also poses new challenges around over-indebtedness and consumer protection. The future requires continuous monitoring and responsive regulations to further financial inclusion responsibly.
Disruption, a seismic shift in the private equity industry
This document summarizes the key findings of a survey on the private equity industry. It finds:
1) The private equity industry is facing disruption from relentless increased regulation globally which has forced funds to redesign business models and focus on controlling costs and improving efficiency.
2) Funds are struggling to meet complex new compliance requirements while transforming operations and adopting new digital technologies, but existing technology solutions are inefficient.
3) Regulations have increased demand for new skills among finance teams, but funds are facing talent shortages, forcing them to look outside the industry and consider outsourcing functions.
Sme finance-policy-presentation-g20-workshop-riyadh-mar11-2014
This document discusses constraints to SME financing and innovative approaches to addressing them. It covers:
1. Traditional constraints like information asymmetry, lack of usable collateral, and financing sources/products.
2. Innovative responses using technologies like big data, digital footprints, and supply chain relationships.
3. The role of policy in enabling regulatory frameworks for innovative approaches, like factoring, and establishing electronic platforms and laws for security/signatures.
Solving Financial Constraints with Innovative Funding Solution
This document discusses financial challenges facing small and medium enterprises (SMEs) in obtaining funding from traditional sources like banks. It introduces fintech platforms like Velotrade that use innovative methods to connect SMEs needing funding with investors online, providing more efficient, flexible funding options. Major hurdles for trade finance include fraud prevention and lack of standardized products, but emerging technologies like blockchain may help address these issues if widely adopted. Collaboration between banks and fintech is also emphasized as a way forward.
Financial Regulatory Reform: A New Foundation
This document proposes reforms to the US financial regulatory system in response to the financial crisis. It recommends (1) subjecting all financial firms that could pose systemic risks to strong oversight by the Federal Reserve and new standards, (2) establishing comprehensive regulation of markets for securities, derivatives, and payment systems, (3) creating a new Consumer Financial Protection Agency to regulate consumer financial products and services, (4) giving the government new powers to resolve failing non-bank financial institutions in a crisis, and (5) promoting higher international regulatory standards and cooperation. It also proposes restructuring financial regulation by creating new oversight bodies and agencies.
Financial regulation
The document discusses financial regulation and why it is important, focusing on regulations for banks. It addresses eight categories of banking regulations: (1) government safety nets like FDIC insurance that aim to protect depositors but can encourage moral hazard; (2) restrictions on asset holdings and capital requirements to reduce risk; (3) bank supervision through chartering and examinations; (4) assessing risk management; (5) disclosure requirements to provide transparency; (6) consumer protections; (7) restrictions on competition (now eliminated); and (8) lessons from the 1980s financial crisis when deregulation increased risks. While regulations aim to promote stability, they also sometimes introduce new problems or are insufficient to prevent crises.
Financial regulation
The document discusses financial regulation and why it is important, focusing on regulations for banks. It addresses eight categories of banking regulations: (1) government safety nets like FDIC insurance that aim to protect depositors but can encourage moral hazard; (2) restrictions on asset holdings and capital requirements to reduce risk; (3) bank supervision through chartering and examinations; (4) assessing risk management; (5) disclosure requirements to provide transparency; (6) consumer protections; (7) restrictions on competition (now eliminated); and (8) lessons from the 1980s financial crisis when deregulation increased risks. While regulations aim to promote stability, they also sometimes introduce new problems or are insufficient to prevent crises.
Financial regulation
The document discusses financial regulation and why it is important, focusing on regulations for banks. It addresses eight categories of banking regulations: (1) government safety nets like FDIC insurance that aim to protect depositors but can encourage moral hazard; (2) restrictions on asset holdings and capital requirements to reduce risk; (3) bank supervision through chartering and examinations; (4) assessing risk management; (5) disclosure requirements to provide transparency; (6) consumer protections; (7) restrictions on competition (now eliminated); and (8) lessons from the 1980s financial crisis when deregulation increased risks. While regulations aim to promote stability, they also sometimes introduce new problems or are insufficient to prevent crises.
Financial regulation
The document discusses financial regulation and its purposes. It addresses why the financial system and banks specifically are highly regulated sectors. Regulations aim to maintain market confidence, financial stability, and consumer protection. However, regulations can also create unintended problems like moral hazard. The document outlines eight categories of banking regulations and analyzes examples like government safety nets and capital requirements, discussing their goals and potential issues. Overall, financial regulation pursues important objectives but also presents challenges in policymaking and supervision.
Similar to Ch04 (20)
Banking and Financial Institutions- The Latest Updates.pptx
Banking and Financial Institutions- The Latest Updates.pptx
Financial Crime: How Financial Institutions Can Mitigate Risk and Improve Com...
Financial Crime: How Financial Institutions Can Mitigate Risk and Improve Com...
Fintech and market structure in financial services: Market developments and p...
Fintech and market structure in financial services: Market developments and p...
Microfinance: Yesterday, Today, and Tomorrow: What is the Next Best Practices
Microfinance: Yesterday, Today, and Tomorrow: What is the Next Best Practices
Disruption, a seismic shift in the private equity industry
Disruption, a seismic shift in the private equity industry
Sme finance-policy-presentation-g20-workshop-riyadh-mar11-2014
Sme finance-policy-presentation-g20-workshop-riyadh-mar11-2014
Solving Financial Constraints with Innovative Funding Solution
Solving Financial Constraints with Innovative Funding Solution
More from LUXSVB
Chap009
The document discusses various capital budgeting techniques for evaluating investment projects, including net present value (NPV), internal rate of return (IRR), payback period, discounted payback period, and profitability index. It provides examples of calculating each measure and outlines their basic rules. NPV is presented as the preferred method since it considers the time value of money and risk. Other methods like payback period are seen as less rigorous but still useful for measuring aspects like liquidity.
Ch08
This chapter discusses several factors that influence interest rates: marketability, liquidity, default risk, call privileges, prepayment risk, convertibility, and taxation. It explains how each of these factors affects the promised and expected yields on different types of financial assets. The risk-free interest rate underlies all other interest rates, which are scaled upward depending on their degree of additional risk factors like default risk or prepayment risk.
Ch10
The document provides an overview of the money market and key players. It discusses how governments, through treasury bills, and security dealers, through repurchase agreements, are major borrowers in the money market. It also outlines the roles of central banks, commercial banks, corporations and other financial institutions as important lenders and borrowers in the money market.
Ch07
This document discusses inflation, deflation, yield curves, and duration and how they impact interest rates and asset prices. It defines key terms like inflation, nominal and real interest rates, and explores theories on the relationship between inflation and interest rates. It also examines how yield curves are formed and used, and introduces the concept of duration as a measure of a debt security's price sensitivity to interest rate changes.
Ch06
This chapter discusses various methods used to measure interest rates and prices of financial assets. It covers topics such as basis points, yields, discounts, and how interest rates are calculated for different financial instruments. Various rates are also defined, such as coupon rates, current yields, and annual percentage rates. The relationship between interest rates and asset prices is explored, with higher yields generally corresponding to lower prices.
Ch05
The document summarizes several theories about what determines interest rates:
1) The classical theory argues that interest rates are determined by the supply of household savings and the demand for business investment.
2) The liquidity preference theory views interest rates as the price that induces people to hold cash rather than bonds given transactions, precautionary, and speculative demands for money.
3) The loanable funds theory sees interest rates as set by the overall demand for and supply of credit from various sources like domestic savings, money creation, and foreign lending.
Ch02..
The document provides an overview of key financial statements including the balance sheet, income statement, and statement of cash flows. It explains the purpose and components of each statement. The balance sheet presents assets, liabilities, and equity of a company at a point in time. It lists current assets like cash, receivables, and inventory as well as long-term assets. Liabilities include current obligations and long-term debt. Equity encompasses share capital and retained earnings. The income statement displays revenues and expenses over a period of time to arrive at net income. It is used to analyze a company's profitability.
Chapter 1.
The financial system channels savings from those who save to those who borrow to invest and grow the economy. It performs important functions like providing liquidity, credit, and risk protection. There are different types of financial markets, including money markets for short term loans, capital markets for long term financing, primary markets for new securities, and secondary markets for trading existing securities.
Recently uploaded
Creative Web Design Company in Singapore
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
On episode 272 of the Digital and Social Media Sports Podcast, Neil chatted with Brian Fitzsimmons, Director of Licensing and Business Development for Barstool Sports.
What follows is a collection of snippets from the podcast. To hear the full interview and more, check out the podcast on all podcast platforms and at www.dsmsports.net
Understanding User Needs and Satisfying Them
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
2022 Vintage Roman Numerals Men Rings
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
Creative Web Design Company in Singapore
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
CALL 8867766396 SATTA MATKA | DPBOSS | KALYAN MAIN BAZAR | FAST MATKA | DPBOSS GUESSING | TARA MATKA | KALYAN CHART | MATKA BOSS
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
SATTA MATKA SATTA FAST RESULT KALYAN TOP MATKA RESULT KALYAN SATTA MATKA FAST RESULT MILAN RATAN RAJDHANI MAIN BAZAR MATKA FAST TIPS RESULT MATKA CHART JODI CHART PANEL CHART FREE FIX GAME SATTAMATKA ! MATKA MOBI SATTA 143 spboss.in TOP NO1 RESULT FULL RATE MATKA ONLINE GAME PLAY BY APP SPBOSSTop mailing list providers in the USA.pptx
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Industrial Tech SW: Category Renewal and Creation
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
The Genesis of BriansClub.cm Famous Dark WEb Platform
BriansClub.cm, a famous platform on the dark web, has become one of the most infamous carding marketplaces, specializing in the sale of stolen credit card data.
Authentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto RicoCorey Perlman, Social Media Speaker and Consultant
Social media for business Digital Transformation Frameworks: Driving Digital Excellence
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
Best practices for project execution and delivery
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka Indian satta Matka Dpboss Matka Kalyan Chart Matka Boss otg matka Guessing Satta Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Schedule Unveiled
Income Tax exemption for Start up : Section 80 IAC
A presentation on the concept of Exemption of Profits of Start ups from Income Tax
HOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdf
How to Start Up a Company: A Step-by-Step Guide Starting a company is an exciting adventure that combines creativity, strategy, and hard work. It can seem overwhelming at first, but with the right guidance, anyone can transform a great idea into a successful business. Let's dive into how to start up a company, from the initial spark of an idea to securing funding and launching your startup.
Introduction
Have you ever dreamed of turning your innovative idea into a thriving business? Starting a company involves numerous steps and decisions, but don't worry—we're here to help. Whether you're exploring how to start a startup company or wondering how to start up a small business, this guide will walk you through the process, step by step.
Recently uploaded (20)
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
The Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb Platform
Authentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto Rico
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Income Tax exemption for Start up : Section 80 IAC
Income Tax exemption for Start up : Section 80 IAC
HOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdf
HOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdf
Ch04
- 2. Chapter 4 The Future of the Financial System and the Money and Capital Markets
- 10. Forces Affecting the Financial System of the Future