Integration of Islamic bank specific risks and their impact on the portfolios of Islamic Banks

SAA Shah, R Sukmana, BA Fianto - International Journal of Islamic …, 2021 - emerald.com
International Journal of Islamic and Middle Eastern Finance and Management, 2021emerald.com
… This study proposes a unique risk-return relationship framework encompassing specific
risks faced by Islamic banks under the ambit of portfolio theory showing how Islamic banks
establish a steeper risk-return path under Shariah compliance. By doing so, this study
identifies a unique “Islamic risk-return” nexus in Islamic settings as an explanation for the
concern of contemporary researchers that Islamic banks are more risky than conventional
banks. … Hence, this study first explores its dynamics and moves on to incorporate other …
Abstract
Purpose
This study aims to propose a risk management framework for Islamic banks to address specific risks that are unique to Islamic bank settings.
Emerald Insight
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