Articles from the author

We know that an IFI, being the lessor to the asset, has the responsibility of an owner and while fulfilling the same, is exposed to certain high value and at times unknown costs. How this risk is mitigated by the IFI in a leasing transaction?

In our new subject on risk management in Islamic financing structures, we are in the process of examining the risks in an Ijara transaction and how they are mitigated from within the Ijara or leasing structure.

This is the risk management aspect of structures such as Mudaraba, Murabaha, Musharaka, Ijara, Istithna and Salam, and how it is different from the risk management side of conventional lending.

This week's column on Islamic banks versus their conventional counterparts begins with a recap of last week's discussion.