Apart from offering significant economic prospects, the staggering growth and development has posed new challenges to global supervisory authorities and to Islamic banks that encountered new challenges in managing risks, particularly related to maintaining operational soundness of IFIs. Two very crucial areas yet to be thoroughly developed in an integrated manner are financial stability and risk management. In this respect, the volume entitled Financial Stability and Risk Management in Islamic Finance, has been gathered and edited with a main objective to fill the intellectual gap in such areas, particularly from the perspective of theoretical, empirical and policy oriented focus. Selected papers in this volume are from the 8th International Conference on Islamic Economics and Finance held in Doha, Qatar, 19–21 December, 2011, and from the 9th International Conference on Islamic Economics and Finance held in Istanbul, Turkey, 9–11 September, 2013.
PART 1: FINANCIAL STABILITY
Financial sector assessment program for Islamic financial system (iFSAP) / Dadang Muljawan
Islamic finance and financial stability: A review of the literature / Ahmed Belouafi, Chaouki Bourakba and Karima Saci
The role of Islamic banks subsidiaries in the transmission of liquidity shocks across countries / Mehdi Mili, Jean-Michel Sahut and Eryj Trimeche
Assessing the stability and resilience of Islamic banks through stress testing under a standardized approach of the IFSB Capital Adequacy Framework / Jamshaid Anwar Chattha
Currency-banking crises and economic downturns: A comparison between Islamic and conventional banks / Meriem Djennas, Mohamed Benbouziane and Mustapha Djennas
The stability comparison between Islamic banks and conventional banks: Evidence in Indonesia / Gamaginta and Rofikoh Rokhim
PART 2: RISK MANAGEMENT
Investment deposits, risk-taking and capital decisions in Islamic banks / Hichem Hamza and Zied Saadaoui
Credit default sharing: New Islamic financial instruments for hedging default risk / Nader Naifar
Performance at risk: Another approach to value at risk for Islamic finance / Alioune Diagne
