'I highly recommend this compelling book to any newcomer to Islamic finance, as a primer on the subject, as well as to experts.'Mahmoud Mohieldin, The World Bank President's Special Envoy

Examines the resilience of Islamic banking during the global financial crisis and lessons for risk management

Do Islamic financial institutions perform better than their conventional counterparts during periods of financial stress? To what extent do systems for managing risk have to be adapted for Islamic financial institutions, given the unique characteristics of their assets and liabilities and the need for Shari'ah compliance? These issues have come to prominence since the global financial crisis of 2008 and the subsequent recession, and they are addressed in this book.

The challenges for Islamic financial institutions are explored in an international post-Basel II system where banks are required to have more capital and liquidity. Governance issues are also examined, given their influence on client and investor perceptions and their ultimate implications for institutional stability and sustainability. The book concludes with suggestions for directing the Islamic financial industry towards a better fulfilment of both the legal and social requirements of Shari'ah.

Key Features
. Presents the basic principles of Shari'ah and the legal and regulatory environment under which Islamic banks operate
. Examines the features of financial products and the product development system in Islamic banks
. Presents a scheme to classify products as Shari'ah based, Shari'ah compliant and pseudo Islamic
. Critically evaluates the controversies related to the types of products marketed by Islamic banks, highlighting the external and internal constraints under which products are developed

Habib Ahmed is Sharjah Chair of Islamic Law and Finance, Mehmet Asutay is Reader in Middle Eastern and Islamic Political Economy and Finance, and Rodney Wilson is Emeritus Professor of Islamic Banking and Finance, all at the University of Durham.

Cover images: © Carol Herbert/iStockphoto.com and Graham Heywood/iStockphoto.com.

Cover design:

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List of Figures; List of Tables; List of Contributors; 1 Reflecting on Islamic Banking and Financial Crisis: Risks, Reputation and Stability, Habib Ahmed, Mehmet Asutay and Rodney Wilson; 2 Reshaping the Islamic Finance Industry: Applying the Lessons Learnt from the Global Financial Crisis, Rafe Haneef and Edib Smolo; 3 Assessing the Resilience of Islamic Banks: An Empirical Analysis, Rania Abdelfattah and Ahmed Badreldin; 4 Stability of Islamic Banks: A Comparison of Conventional and Islamic Banks, Matthias Verbeet;
5 Islamic Banks' Financing Behaviour: A Pilot Study, Mohd Afandi Abu Bakar, Hjh Radiah Abdul Kader and Roza Hazli Zakaria; 6 Risk Management Practices of Islamic Banks: International Evidence, Romzie Rosman and Abdul Rahim Abdul Rahman; 7 Liquidity Risk Evidence Management and Financial Performance of Islamic Banks: Empirical Evidence, Noraini Mohd Ariffin and Salina Hj. Kassim; 8 Risk Management and Islamic Forward Contracts, Sherin Kunhibava; 9 Enhancing Governance, Accountability and Transparency in Islamic Financial Institutions: An Examination into Shari¿ah Internal Control Audit, Zurina Shafii and Supiah Salleh; 10 Shari¿ah Report: A Potential Tool for Shari¿ah Non-compliant Risk Management, Abdou Diaw and Irawan Febianto; 11 A Survey of Shari¿ah Governance in Islamic Financial Institutions in Malaysia, GCC Countries, and the UK, Zulkifli Hasan;
12 Towards Genuine Shari¿ah Products with Lessons of the Financial Crisis, Abdulazeem Abozaid; Index