A New Look on Risk Analysis for Islamic Banks

The Islamic finance is a rapidly growing part of the financial sector in the world. Indeed, it is not restricted to Islamic countries and is spreading wherever there is a sizable Muslim community. More recently, it has caught the attention of conventional financial markets as well. According to some estimates, more than 250 financial institutions in over 45 countries practice some form of Islamic finance, and the industry has been growing at a rate of more than 15 percent annually for the past five years. The markets current annual turnover is estimated to be $350 billion, compared with a mere $5 billion in 1985.