Case study: techniques used by Islamic financial institutions to offset losses in investment returns.

Institutions that provide Islamic financial services are exposed to rate of return risk as one of the risks in their balance sheets. The increase in Standard interest rates cause investment account holders to expect higher returns. Rate of return risk differs from risk Interest rates in Islamic financial institutions; Because it is concerned with the results of the investment activities at the end of the investment period, which cannot Know her in advance. Rate of return risk can be an unaccounted business risk. As Islamic financial institutions may be exposed in some Often times, competition pressure is forcing them to pay returns that exceed the rate of return on assets funded by account holders Investment. Islamic financial institutions may then decide to forfeit their share of the profits as speculative in order to satisfy Money providers, and discourage them from withdrawing their money. The imputed commercial risk is derived from the competitive pressures on them Institutions to attract and retain investors (fund providers). The institutions' decision to forfeit all or part of their profits in favor of Investment account holders are a purely commercial decision, and it must be a document of specific policies and procedures, approved by the board Administration. Profit adjustment reserve is another technique used by Islamic financial institutions in this case. Profit adjustment reserve is the amount that Islamic financial institutions allocate from their gross income before distributing the mudarib share, with the aim of maintaining a certain level of investment return on investment account holders and increasing shareholders' equity. The basis for calculating this amount should be known in advance and indicated in the contractual conditions with the investment account holders And officially approved by the Board of Directors of the Foundation. The supervisory authority in some countries detail requirements related to settlement reserves Earnings. ________________ In 2015, Qatar First Bank increased income for investment account holders by relinquishing some of its shares of profit as a mudarib, until it was in agreement with the general market profit rates. By considering investment account holders as one money, and using the bank's 2015 annual report, find

1. The ratio of the profit distribution between the speculator and the original money profit - the money profit ratio (before assignment). 2. What is the percentage that the bank waived as a speculator of its profit? 3. The ratio of the profit distribution between the mudarib and the profit of money after Qatar First Bank gave up a portion of his profit as a mudarib - the money profit rate.