KUALA LUMPUR: The management of risks in Islamic banking is becoming more challenging today because of its peculiar risk characteristics and the requirement for compliance with syariah principles.
Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said while Basel II initiatives on the identification of credit, market and operational risks could be assimilated into Islamic banking, the initiatives would have to be complemented with consideration of other dimensions of risks inherent in Islamic financial transactions.