Banking Framework: The Case of The Islamic Banks

Abstract

ABSTRACT Risk and liquidity management are not only an important aspect in Islamic banking but a big issue in all banks whether Islamic or not. Risk management practices and processes are irrespective of religion, colour, or country. The Islamic banking has introduced innovations in the banking sector where transactions must pass through owning real physical assets. Islamic banks are growing rapidly and have developed their own techniques for management o these issue, which are elaborated in this paper. The following paper focuses on the use of profit-sharing modes , nature of risks face by Islamic banks, and clarify the risks, and management of risk and liquidity