An overview of the lecture on “Reflections on Displaced Commercial Risk”

  Date: 9 June 2022 Day: Thursday Time: 12 Noon (Kuwait time) Speaker: Dr. Mustafa Disli is Assistant…

 

  • Date: 9 June 2022
  • Day: Thursday
  • Time: 12 Noon (Kuwait time)
  • Speaker: Dr. Mustafa Disli is Assistant Professor at the College of Islamic Studies, Hamad Bin Khalifa University.
  • Organizer: Islamic Econmics Association, Faculty of Shariah and Islamic Studies, Kuwait University
  • Web: https://shariaa.org

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Introduction:

Islamic Economics Association at the Faculty of Shariah and Islamic Studies, Kuwait University is continuously constructing various types of events and lectures to promote Islamic Finance framework, strategies and standards. In regard to that the lecture on “Reflections on Displaced Commercial Risk” was held on 9 June 2022. Dr. Mohammad Mohiuddin, the Moderator of the session started the session and briefly introduced the Association and the speaker to all participants. The speaker Dr. Mustafa Disli addressed the background of the topic of the lecture at the beginning and mentioned the content of the lecture.

Keywords: Risk. Islamic. Banking.

Objectives:

The objectives of the lecture are:

  1. Assisting the researchers, professionals and students to know what are the commercial risks.
  2. Introducing the commercial risks in Islamic Banking.
  3. Explaining the rate of return risk, commercial risk and withdrawal risk.
  4. Addressing the standard practice: PER and IRR.
  5. Explaining Islamic Banks: How different are they?

Discussion:

Dr. Mustafa Disli discussed the topic in details and some of the contents of the discussion are as follows:

  1. Understanding of displaced commercial risks.
  2. Explaining major types of risks in Financial Industry.
  3. The rate of return risks, commercial risk and withdrawal risks.

4. The standard practice: Profit Equalization Reserve (PER) & Investment Risk Reserve (IRR).

  1. Islamic Bank: How different are they?
  2. In conclusion, Dr. said:

– Classical textbooks typically mention that displaced commercial risk is unique to Islamic banks

– Numerous academic papers confirm this by showing that Islamic banks us conventional bank rates as benchmark

– It might be the case that displaced commercial risk is not unique to Islamic banks, and that this risk might be caused by the share of Islamic banks in the market.

Link:

https://www.youtube.com/watch?v=oKvv1vvNBO8

May Allah accept all our good deeds and services.

Prepared by:

Dr. Mohammad Mohiuddin

Moderator of the session

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