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Is Basel Iii a Better Support to Islamic Banks Than Basel Ii?

In: Business and Management

Submitted By jabbar6666
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Is Basel III a better support to Islamic banks than Basel II?
International Interdisciplinary Conference On Changes, Challenges and Consequences In Commerce, Engineering, Technology and Social Science.
Institute of Business Management and Research, Chakan & Choice Institute of Management Studies and Research, pune, 15th March, 2014.
Dr. Atmaram palnitkar Research Guide& Principal of Dayanand College OF Commerce, Latur. palnitkarav@rediffmail.com&9423347478

Abdul-Jabbar Qasem Ali Al-badaani
Research Scholar of Com and Magt
Sci, SRTM University, Nanded.
Amaf3600@gmail.com&7709670130

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ABSTRACT

Banking activities involve many risks calculated and otherwise. Banks have to take appropriate measures and require management of their capital and credit and implementation procedures in keeping with the best international practices, to mitigate potential losses and avoid projected pitfalls. In view of the recent financial crisis, due to wrong management or improper implementation as well as the collapse of large economies has had a cascading effect all round the world in the form of collapses of famous institutions and banks, and thus arose a decision to have a better financial control in the form of Basel I to be later followed by Basel II and Basel III. Thus a new culture in financial controls and risk management has arisen to safeguard the banking industry in particular and the economies in general. Basel III has been introduced to impose more restrictions on banks to reduce their ability of speculation in the financial markets. However, as was proved by the recent crisis, the Islamic banks were spared from its problems, and therefore do not need such extra controls in this matter unless market instruments are transformed to include...

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