The partnership's first initiative, part of a planned series of research projects, will be a study examining the risk-management challenges facing Islamic banks, with a particular focus on musharaka and mudaraba under the profit-and-loss-sharing system.
Group President & Chief Executive
Yousif added: "We are committed to serving the sector by addressing several pressing issues that the industry is facing today. The research collaboration with the
"The enabling support system to mitigate these inherent risks and challenges is either limited or non-existent. As a result, equity-based investments remain under-represented in the Islamic banking industry."
Yousif said: "Being the first of its kind, the research project will not only collect data from a number of countries where musharaka and mudaraba are being used in banking transactions, but the project will also examine what enabling legal and regulatory environment would be needed to support the adequate risk management of musharaka and mudaraba."
Alawode said: "We look forward to our collaboration with Islamic financial institutions, such as
The research project is now under way. Its preliminary findings are expected to be available in the first quarter of 2015.
It is a leading international Islamic banking group providing its unique services in countries with a population totaling around one billion and is rated by Standard & Poor's at BB+ (long term)/B (short term).
The group has a wide geographical presence in the form of subsidiary banking units and representative offices in 15 countries, which in turn provide their services through more than 480 branches.
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