The regulatory framework on liquidity risk management of Islamic banking in Malaysia. International Journal of Business and Society, 19 (3). pp. 332-352. ISSN 1511-6670 (2018)
Abstract
The study identifies the strengths and weaknesses of the regulatory framework (RF) in Basel Committee on Banking Supervision (BCBS), Islamic Financial Services Board (IFSB) and Bank Negara Malaysia (BNM) for liquidity risk management (LRM) Islamic banking in Malaysia, thus suggesting best practices. The study employs a comparative content analysis of the three regulations. The results showed that each body produces its own range of RF. Although BCBS is a key pillar for LRM, it is found that IFSB issues Shariah-compliant guidelines. IFSB is best practice because it puts the needs of the role of Shariah Committee in the governance structure of the system so that all the processes of governance, control, monitoring and measurement of LRM are shariah compliance. Therefore, it is imperative that RF for IFSB becomes a reference for Islamic banking institutions in managing liquidity risk, although IFSB is not a mandatory regulatory framework for Islamic banking in Malaysia.
| Item Type: | Article |
|---|---|
| Keywords: | Islamic banking, Islamic financial, Liquidity Risk Management (LRM), Regulatory Framework (RF), Shariah-compliant, Basel Committee on Banking Supervision (BCBS), Islamic Financial Services Board (IFSB) |
| Taxonomy: | By Niche > Islamic Banking > Banks and Banking > Finance By Niche > Islamic Banking > Banks and Banking > Government Policy By Niche > Islamic Banking > Banks and Banking > Religious Aspects |
| Local Content Hub: | Niche > Islamic Banking |
| Depositing User: | Rosila Nordin |
| Date Deposited: | 05 Jun 2024 08:29 |
| Last Modified: | 05 Jun 2024 08:29 |
| Related URLs: |
Actions (login required)
 |
View Item |