Credit risk in Islamic financial products

Md Nurul Kabir, Andrew C. Worthington

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    Measuring credit risk is one of the most important aspects of bank management.Whether Islamic banks have higher or lower credit risk than conventional banks dependson two important elements. First, the nature of credit risk in Islamic financial products.Second, the suitability of credit risk measurement techniques for Islamic banks. Wereview and critically evaluate the available literature relating to the credit risk of Islamicbanks. This enables practitioners and regulators alike to gain a comprehensive awarenessof the nature of credit risk in Islamic banking products from several differentperspectives. We also identify the measurement techniques currently available for Islamicbanks along with the pros and cons of each of the measurement techniques.

    Original languageEnglish
    Title of host publicationContemporary Issues in Islamic Finance
    Subtitle of host publicationPrinciples, Progress and Prospects
    PublisherNova Science Publishers
    Chapter5
    Pages73-84
    Number of pages12
    ISBN (Electronic)9781629489063
    ISBN (Print)9781629489056
    Publication statusPublished - 1 Jan 2014

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    Kabir, M. N., & Worthington, A. C. (2014). Credit risk in Islamic financial products. In Contemporary Issues in Islamic Finance: Principles, Progress and Prospects (pp. 73-84). Nova Science Publishers.