Risk

Regulations governing liquidity risk in Islamic Banking

This article was first published in Islamic Finance news Volume 16 Issue 48 dated the 4th December 2019 Given the systemic importance and the pivotal role played by banks in a country’s economy, banking regulations are of paramount importance for all stakeholders. Guidelines and regulations enable all banks to maintain stability and monitor their risk. In the context of Islamic Banking, liquidity risk is challenging because of limited availability of Shariah compliant short term liquidity instruments and a shallow markets...

Is Debt to GDP Ratio a good explanatory of country risk?

The Debt to GDP ratio is often taken as a measure to explain the risk rating associated with the Sovereign rating for that country. In this article we attempt to shed light on other explanatory variables for Sovereign ratings other than Debt to GDP ratio. Debt to GDP ratio of a country is a very important variable that determines the country’s Sovereign risk rating as it reflects the Country’s ability to service its debt. However, for lower income countries the...

Financial Risk Management – Challenges before Businesses

This article was originally published in The Global Analyst November 2017 issue. Those who cannot remember the past are condemned to repeat it-George Santayana... There is not one year that passes by without any crisis. Some are big and tectonic in nature (like the Global financial crisis in 2008) while others have a limited but powerful impact like Asian Financial crisis. When macro crisis hits the economy, it is natural that companies risk management systems are tested to the core....

Top GCC Risks for 2016 & Beyond

Oil: When will this slide end? With the oil price hovering around $35 per barrel the question remains as to how much longer can OPEC continue with its current policy of pumping as much oil as it can in a quest to win more market share and drive out high cost producers. OPEC member countries produce around 37% of the global crude oil, and disagreements over production ceilings have already affected some of the members. Some of the big producers,...