The influence of displaced commercial risk on bank profitability in Islamic banking institutions

• Main Authors: Che Arshad, Noraziah, Zakaria, Roza Hazli, Sulaiman@Mohamad, Ahmad Azam
• Format: Conference or Workshop Item
• Language: English
• Published: 2014
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/26263/1/IACI%202014.pdf; http://repo.uum.edu.my/26263/; https://ideas.repec.org/p/sek/iacpro/0100807.html

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...