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A Capital adequacy framework for Islamic banks: the need to reconcile depositors' risk aversion with managers' risk taking

Conceptually, an Islamic bank has an equity-based capital structure, dominated by shareholders’ equity and investment deposits based on profit and loss sharing [PLS]. There is no need for capital adequacy regulations if the Islamic banks are structured as pure PLS-based organizations. However, due t...

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Bibliographic Details
Main Authors: Dadang Muljawan, Humayon A. Dar, Maximilian J.B. Hall
Format: Default Preprint
Published: 2002
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Online Access:https://hdl.handle.net/2134/369
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