What should be the key priorities for Islamic Banks?

Transcription

1. Four main priority areas which Islamic banks should focus on : Priority  area   1   2   3   4   Enhanced  and   diversified   business  mix   Efficiency  in   opera&ons     Explore  global   growth  op&ons   Risk   management   Poten&al  ac&ons  for  Islamic  banks   ▪  Change  business  mix  in  product  areas  where  Islamic  banks  have  not  been  tradi2onally   focused  or  where  there  is  growth  poten2al  such  as       –  Credit  cards  /  Personal  Loans   –  Fee-­‐based  businesses  such  as  Asset  Management,  Treasury  opera&ons,  Capital   Market   –  Islamic  Investment  Banking(as  an  upcoming  growth  area)   ▪  Make  efforts  to  lower  cost  of  opera&on  and  improve  service  quality  in  order  to   improve  compe22veness   ▪  Well  posi2oned  Islamic  banks  can  consider  interna&onal  growth  opportuni&es  in   countries  with   –  Sufficient  target  popula&on  and  strong  un-­‐met  demand   –  Feasible  market  entry  based  on  compe22ve  environment  and  regulatory  climate   ▪  Upgrade  risk  management  systems  and  capabili&es  in  an&cipa&on  of  required   capability  to  manage  in  crisis  environments,  i.e.  focus  on   –  Credit  risk  as  an  important  area  of  focus  given  high  real  estate  concentra2on  and   poten2al  for  increased  non-­‐performing  loans.   –  Liquidity  risk  via  improved  sources  of  funding,  new  hedging  tools  and  enhanced   infrastructure.  Cri2cal  to  manage  liquidity  in  light  of  limited  sources  of  funding  for   Islamic  banks.