Measures of displaced commercial risk on financial stability in Islamic banking institutions

• Main Authors: Che Arshad, Noraziah, Zakaria, Roza Hazli, Sulaiman @ Mohamad, Ahmad Azam
• Format: Article
• Language: English
• Published: Universiti oF Malaya 2015
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/26261/1/RIS%202%202%202015%2026%2045.pdf; http://repo.uum.edu.my/26261/; https://ejournal.um.edu.my/index.php/RIS/article/view/9948

Islamic banks are exposed to a unique risk such as 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...