Abstract
The author makes comments on the state of the problem in part of the English-speaking scientific thought. The authors present a comparative analysis of risk management conducted in countries where the dual banking system is practised — Islamic (ethical) banking and conventional (western) banking. The study showed that a risk profile of an Islamic bank is not significantly different from the one of the conventional banks in practices. In the beginning, they point out the central thesis and prospects for the development of conventional and Islamic banking. The central part of the comments begins with the historical aspect of the comparison. According to him, despite the differences, they are based on the priority of financial and human values. Further, the authors carefully discuss the risk profile of Islamic banks and the unique risks facing Islamic banks. It was confronted with conventional risk management of banks based on the Basel Committee on Banking Supervision (BCBS). Today, the regulation applies to credit risk, market risk, operational risk and liquidity risk (Basel II and Basel III). After all, the author reaches two essential conclusions for his research.
Highlights
Instead of an Introduction The scientific paper attempts to compare the elements of Islamic banking and conventional banking in Western countries
The functions and operating modes of Islamic We could highlight the following two findings: banks are based on the principles of Islamic Sha- First, Islamic banking is more humanising riah than conventional banking
Islamic Banking can be described as a system of banking that adheres to the principles of Sharia, i. e. the Islamic Law. It can be viewed as a financial system which identifies itself with the spirit of Sharia (The Islamic Law), as laid down by the Holy Qur’an and Sunnah
Summary
Instead of an Introduction The scientific paper attempts to compare the elements of Islamic (ethical) banking and conventional banking in Western countries. We defend the thesis that, despite the differences between conventional and Islamic banking, each one is based on specific financial and human values. (c) Shariah-compliant finance creates its financial products based on Islamic contracts and profit-sharing.
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