Lowly or Negative Benchmark Rates Bandwagon: Any Risk Implications for Islamic banks?
<p><em>To stimulate the economy, regulators across all jurisdictions have been taking unconventional approaches. Thus, in recent years, the management of benchmark rates (or interest rates) has received considerable prominence in the banking sector due to some reasons including supervisi...
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Syarif Hidayatullah State Islamic University of Jakarta
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doaj-e67b2d5282f849109fbb07a488be0c712020-11-25T00:03:41ZengSyarif Hidayatullah State Islamic University of JakartaAl-Iqtishad: Jurnal Ilmu Ekonomi Syariah2087-135X2407-86542018-01-0110111513410.15408/aiq.v10i1.61213831Lowly or Negative Benchmark Rates Bandwagon: Any Risk Implications for Islamic banks?Jamshaid Anwar Chattha0Syed Musa Alhabshi1Central Bank of Kuwait International Islamic University MalaysiaIIUM Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia<p><em>To stimulate the economy, regulators across all jurisdictions have been taking unconventional approaches. Thus, in recent years, the management of benchmark rates (or interest rates) has received considerable prominence in the banking sector due to some reasons including supervision banks' benchmark rates under Basel II. This paper reviews the possible dysfunctional implications of lowly and/or negative rates and provides a risk management and regulatory perspective for Islamic banks. These consequences call for a better risk management with appropriate tools and effective supervisory oversight. It hoped that the initial discussion presented in this paper on the implications and controls invites a broader debate on this issue in the Islamic financial services industry. </em></p><p>DOI: <a href="http://dx.doi.org/10.15408/aiq.v10i1.6121">10.15408/aiq.v10i1.6121</a><em><br /></em></p>http://journal.uinjkt.ac.id/index.php/iqtishad/article/view/6121negative ratesbenchmark ratesIslamic banksfinancial stability |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Jamshaid Anwar Chattha Syed Musa Alhabshi |
spellingShingle |
Jamshaid Anwar Chattha Syed Musa Alhabshi Lowly or Negative Benchmark Rates Bandwagon: Any Risk Implications for Islamic banks? Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah negative rates benchmark rates Islamic banks financial stability |
author_facet |
Jamshaid Anwar Chattha Syed Musa Alhabshi |
author_sort |
Jamshaid Anwar Chattha |
title |
Lowly or Negative Benchmark Rates Bandwagon: Any Risk Implications for Islamic banks? |
title_short |
Lowly or Negative Benchmark Rates Bandwagon: Any Risk Implications for Islamic banks? |
title_full |
Lowly or Negative Benchmark Rates Bandwagon: Any Risk Implications for Islamic banks? |
title_fullStr |
Lowly or Negative Benchmark Rates Bandwagon: Any Risk Implications for Islamic banks? |
title_full_unstemmed |
Lowly or Negative Benchmark Rates Bandwagon: Any Risk Implications for Islamic banks? |
title_sort |
lowly or negative benchmark rates bandwagon: any risk implications for islamic banks? |
publisher |
Syarif Hidayatullah State Islamic University of Jakarta |
series |
Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah |
issn |
2087-135X 2407-8654 |
publishDate |
2018-01-01 |
description |
<p><em>To stimulate the economy, regulators across all jurisdictions have been taking unconventional approaches. Thus, in recent years, the management of benchmark rates (or interest rates) has received considerable prominence in the banking sector due to some reasons including supervision banks' benchmark rates under Basel II. This paper reviews the possible dysfunctional implications of lowly and/or negative rates and provides a risk management and regulatory perspective for Islamic banks. These consequences call for a better risk management with appropriate tools and effective supervisory oversight. It hoped that the initial discussion presented in this paper on the implications and controls invites a broader debate on this issue in the Islamic financial services industry. </em></p><p>DOI: <a href="http://dx.doi.org/10.15408/aiq.v10i1.6121">10.15408/aiq.v10i1.6121</a><em><br /></em></p> |
topic |
negative rates benchmark rates Islamic banks financial stability |
url |
http://journal.uinjkt.ac.id/index.php/iqtishad/article/view/6121 |
work_keys_str_mv |
AT jamshaidanwarchattha lowlyornegativebenchmarkratesbandwagonanyriskimplicationsforislamicbanks AT syedmusaalhabshi lowlyornegativebenchmarkratesbandwagonanyriskimplicationsforislamicbanks |
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