MALAYSIA - REGULATIONS - The IFSB Council Adopts Two New Guiding Principles for the Islamic Financial Services Industry

www.ifsb.com - The IFSB Council Adopts Two New Guiding Principles for the Islamic Financial Services Industry

Manama/Kuala Lumpur, 29 March 2012 - The Council of the Islamic Financial Services Board (IFSB) has resolved to approve the adoption of two new Guiding Principles in its 20th Meeting in Manama, Bahrain today. The two documents are:

IFSB-12: Guiding Principles on Liquidity Risk Management for Institutions offering Islamic Financial Services (excluding Islamic Insurance (Takāful) Institutions and Islamic Collective Investment Schemes)
IFSB-13: Guiding Principles on Stress Testing for Institutions offering Islamic Financial Services (excluding Islamic Insurance (Takāful) Institutions and Islamic Collective Investment Schemes) (source)

INDONESIA - ARTICLES - Islamic Banking Service Quality and Withdrawal Risk: The Indonesian Experience

Islamic Banking Service Quality and Withdrawal Risk: 

The Indonesian Experience

Muhamad Abduh

International Islamic University of Malaysia (IIUM)

International Journal of Excellence in Islamic Banking and Finance, Vol. 1, No. 2, pp. 1-15, 2011

Abstract:
This paper aims first to evaluate the service quality of Islamic banking and second to explore the withdrawal behavior of Islamic banking depositors based on their evaluation towards its service quality in the context of Indonesia. A total of 276 Islamic banking customers in Jakarta, Indonesia, were involved through a direct survey. Factor analysis was carried out to uncover the key dimensions of Indonesian Islamic banking service quality. Next, we use central tendency measurement to extract the information of depositors’ withdrawal behavior towards those dimensions. Afterwards, the importance and performance analysis (IPA) was employed to evaluate the level of Indonesian Islamic banking service quality. The exploratory factor analysis uncovered five key dimensions of Indonesian Islamic banking service quality, including reliability, bank-customer relationship, tangibles, Shari`ah issues, and rates and charges. Shari`ah and tangible are the first and second most influence factors for depositors to withdraw their funds from Islamic bank. However, despite their high level of importance, Shari`ah and tangible were always perceived poor in performance while others were largely modest. Within this kind of situation, withdrawal risk is, therefore, should be the most potential risk to be anticipated. (download link)

INDONESIA - REGULATONS - Starting BI Monitor Calculation and Return on Investment Risk

REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia (BI) began to oversee the calculation of two additional risk management in Islamic banks, namely the risk of investment (equity of investment risk) and risk of the yield (rate of return risk). Although not yet taken into account in risk assessment (risk profile), Islamic banks are required to calculate how much capital to the management of these risks.  (source)

INDONESIA - REGULATIONS - Sharia banks must calculate yield risk

JAKARTA: Sharia banks are obliged to identify and manage risk from yield and investment, as the central bank makes the regulation on risk management effective starting Nov 2.

According to the new regulation on risk management, sharia banks and sharia units must apply ten risk managements. Most of the risk managements are similar to those apply to conventional banks plus two new risks, namely yield risk and investment risk. (source)

INDONESIA - REGULATIONS - Look forward to Islamic Banking Risk Management Guidance

bisnis.com - JAKARTA: Bank Indonesia was asked to issue clear guidelines in the rules of a special risk management of Islamic banks are scheduled to be published in this month.
 Imam T. Saptono, Director of Compliance of PT Bank Negara Indonesia Sharia, said two new risks that will be regulated by Bank Indonesia, the equity investment risk and rate of return risk, Islamic banks have experienced since its foundation. However, in avoiding this risk, every Islamic bank to apply a different approach, there is no standardization or clear.(source) 

INDONESIA - REGULATIONS - Bank Indonesia Issues Two New Islamic Regulations

JAKARTA (IFT) – Bank Indonesia will issue additional regulations on risk management by Islamic banks by the end of September 2011. Two additional regulations include, equity investment risk and rate of return risk, as well as the fit and proper test for Islamic bankers. (source)

INDONESIA - REGULATIONS - BI Remove the New Regulation of Islamic Banking Risk Management

Jakarta (16 / 9). Islamic bankers who had been managing the financial risk management felt quite relieved, the article of Bank Indonesia will issue two new regulations specialized in risk management in Islamic banking. Thus, Islamic banks no longer need to manage risk management berstandarkan with conventional banking.

Thus statement Directorate of Islamic Banking, E Mulya Siregar when talking to bankers who are members of Asbisindo sharia in Jakarta, yesterday (15 / 9). (source)

INDONESIA - REGULATIONS - BI reviews risk sharing regulations in Islamic banking

REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia (BI) is now reviewing the possibility to establish the results that are stable in the Islamic banking industry. According to Deputy Governor of BI, Halim Alamsyah, it is important to distinguish between Islamic and conventional banking industry.

He put all this time, the liabilities side, Islamic banking is the result of its stable. Because the Islamic banking adheres to the principle of mudaraba where profits are divided based on the ratio agreed in advance. (source)

ARTICLE - Depositor Sensitivity to Risk of Islamic and Conventional Banks: Evidence from Indonesia

Depositor Sensitivity to Risk of Islamic and Conventional Banks: Evidence from Indonesia

The International Journal of Business & Finance Research, 2011

Erie Febrian
University of Padjadjaran
Aldrin Herwany
Department of Management, University of Padjadjaran; Centre for Management Studies (LMFE) University of Padjadjaran