The Extent of Basel Accord implementation on Islamic Banks in Palestine the case of Palestine Islamic Bank

,Orobah Mahmoud

doi:10.47191/jefms/v5-i3-05

Abstract

The primary goal of this study is to examine how the Basel II agreement is being implemented in Islamic banks in Palestine (a case study of Palestine Islamic Bank). To attain the purpose of the research, a descriptive-analytical approach was used, and a questionnaire was distributed to the employees of Palestine Islamic Bank (145) in all branches of Palestine. The study's main result is the implementation of the Basel II Agreement in the Islamic Bank of Palestine. Based on the findings, the researcher has some suggestions, the most essential of which are: empowering and strengthening human resources to monitor different threats. Banks should develop capabilities, develop instruments and systems for measuring risk according to internal assessment methods and adhere to Islamic regulations and rules in Islamic banks to maintain the level of competition with traditional banks in the market.

Highlights

Basel II was launched in 2006 as a risk management framework that considered an early warning system, allowing regulators to focus on problem of Islamic banks rather than all banks
The Islamic Financial Services Board (IFSB) of Malaysia which is regarded as the frame of reference for most Arab central banks with institutional approval is not included in the Basel Committee's International Banking Supervision Standards published in their first and second editions
What is the extent to which Islamic banks have implemented risk management tasks? The researchers computed arithmetic mean and standard deviation of replies from participants in the study sample to questionnaire paragraphs representing a task area related to risk management at the Islamic Bank

Summary

INTRODUCTION

The banking system generally includes a variety of risks that require precautionary measures and appropriate procedures to manage and control these risks in accordance with international best practices to mitigate or avoid potential exposures. The Islamic Financial Services Board (IFSB) of Malaysia which is regarded as the frame of reference for most Arab central banks with institutional approval is not included in the Basel Committee's International Banking Supervision Standards published in their first and second editions It has published standards and instructions on Islamic banks providing unique criteria for Islamic banks in capital adequacy, good governance norms, and transparency; the crisis has proven the need to have appropriate. PROBLEM STATEMENT The development of a risk management framework for Islamic banks is a prerequisite and a sufficient condition for the continued existence of a powerful, transparent, and safe Islamic financial sector When it comes to the external environment, objective concerns are essential, but subjective considerations are more important in the banking environment. Whether or not a bank is profitable, depositors are obligated to receive interest

Recent experience of Islamic banks compared to conventional banks

RESULTS

CONCLUSIONS