THE IMPORTANCE OF A CAPITAL ADEQUACY FOR ISLAMIC BANKS
Journal Title: International journal of research -GRANTHAALAYAH - Year 2017, Vol 5, Issue 4
Abstract
Conceptually, an Islamic bank has an equity-based capital structure, dominated by shareholders’ equity and investment deposits based on profit and loss sharing [PLS]. There is no need for capital adequacy regulations if the Islamic banks are structured as pure PLS-based organizations. However, due to informational asymmetry and risk aversion by investors, there currently exist fixed claim liabilities on the Islamic banking balance sheets. This necessitates the imposition of capital adequacy requirements, which aim at maintaining systemic stability by achieving two fundamental objectives. First, capital regulations should protect risk-averse (assumed unsophisticated) depositors. This requires a minimum equity capital cushion and an optimal assets-liabilities composition. Second, capital regulations should give the right incentives to shareholders to promote prudent behavior by the banks. This requires analysis of the effect of financial participation by shareholders on Pareto optimality, and analysis of potential behavior by shareholders when facing financial uncertainty
PUBLIC PERCEPTION ON THE FACTORS THAT AFFECTING TURKISH PUBLIC ADMINISTRATORS' MANAGER CHOICE
Motivation/Background: The aim of this research to evaluate that Public Perception on the Factors that Affecting Turkish Public Administrators' Manager Choice in Turkey. Method: Quantitative research method was used in t...
PSYCHO-SOCIAL FACTORS CONTRIBUTING TO SUPERSTITIOUS BEHAVIOR: LITERATURE REVIEW
Most superstition from the past have been proven by science as unnecessary, ineffective or just plain silly but are still practiced by normal intelligent people today. Around the world, there are many reappearing themes...
EFFECT OF FARM YARD MANURE APPLICATION RATE ON YIELD AND YIELD COMPONENTS OF LETTUCE (LACTUCA SATIVA) AT JIMMA SOUTHWESTERN ETHIOPIA
The current study was conducted at Jimma University College of Agriculture and Veterinary Medicine of Ethiopia to find the effect of farm yard manure application rate on yield and yield component of lettuce. The experime...
THE ISSUE ON DETERMINATION OF TYPOLOGICAL FEATURES OF PEOPLE, COMMITTING CRIMINAL OFFENSES RELATED TO THE FORGERY OF EXCISABLE GOODS, AS AN ELEMENT OF THE CRIMINALISTIC CHARACTERISTICS
In the article «The issue on determination of typological features of people, committing criminal offenses related to the forgery of excisable goods, as an element of the criminalistic characteristics» prepared by doctor...
HAMMACHIISAA: PERSONAL NAMES AND NAMING PRACTICES AMONG THE KUTTAYE OROMO
The paper examined use of personal names and naming practices among Kuttaye Oromo in Ethiopia. Kuttaye names are not just sheer tags, but it provides more approaching into important social, cultural and political events...