| Summary: | Banks perform the function of financial intermediation and play an important role in the functioning of an economy. Islamic banks, like conventional ones, manage their exposure to credit risk by selecting the right projects and the right profiles (in terms of solvency). The customer rating is important because it allows to measure the risk but also to segment the customer. The requirements of the regulatory authorities are very important at this level. The peculiarities of the Islamic bank are mainly related to the structure of its balance sheet. The principle of profit-and-loss sharing (PPP) makes assets and liabilities less diversified than in conventional banking. Overall, these banks are less risky (in terms of credit), but their operation is more complex on financing operations.
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