2 research outputs found
The moderating effect of risk tolerance on the intention of profit-sharing investment account holders to patronise Islamic banks in Nigeria: a proposed framework
IBs have 3 major sources of funding their activities: equity
provided by their shareholders, transaction deposits and
investment deposit by PSIAHs (Yahaya et. al, 2016)
• Of all the 3 sources, PSIAHs are the most vulnerable that
require special protection because, shareholders’ interest is
protected by the banks’ directors, and transactional deposits
are guaranteed by the bank and repaid on demand
• PSIAHs on the other hand have no representation on the
banks’ board to protect their interest, and their funds is not
guaranteed which exposes them to the possibility of losing
part or all their investment (Alhammadi, et. al, 2018)
• The policies set by the IBs’ board of directors are more likely
to reflect the risk-return preference of their shareholders than
those of PSIAHs (Alhammadi, et. al, 2018