An empirical assessment of the displaced commercial disk in Malaysian Islamic banking institutions: bank profitability model evidence.

• Main Authors: Che Arshad, Noraziah, Zakaria, Roza Hazli, Sulaiman@Mohamad, Ahmad Azam
• Format: Article
• Published: International Association of Islamic Banks, Karachi (Pakistan) 2015
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/26260/; http://islamicbanking.asia/an-empirical-assessment-of-the-displaced-commercial-risk-in-malaysian-islamic-banking-institutions-bank-profitability-model-evidence/

Islamic banks are exposed to a unique risk – Displaced Commercial Risk (DCR). DCR arises from the assets managed on behalf of the investment account holders which may be borne by the Islamic bank’s own capital, when the Islamic banks forgo part or all of its share of profits on the investment accoun...