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Table 1: Bank Islamic Malaysia Berhad (BIMB): Key Financial Indicators 2020 Financial Ratios Return on Equity Return on Asset Cost to Income Gross impaired financing
Table 1: Bank Islamic Malaysia Berhad (BIMB): Key Financial Indicators 2020 Financial Ratios Return on Equity Return on Asset Cost to Income Gross impaired financing Financing loss coverage ratio Financing to fund ratio CASA to total deposit ratio Total capital ratio March 2020 12.7% 0.8% 51.5% 0.83% 184.8% 83.7% 35.9% 19.3% From Table 1 above, discuss BIMB's performance from the risk management perspective. (A) The Risk Informed Pricing Guidelines of BNM 2015 required Islamic banks to set sale price of murabaha based on expected loss (EL). What does this mean from the Shariah compliance perspective? (B) Islamic banking financing are generally more exposed to credit risks than business risks. Explain why. (C) $200 million Murabaha facility was extended by Adam Bank to Idris Corporation who placed an equivalent collateral with a 20 per cent haircut. At 2% probability of default (PD) find the expected loss (EL) and unexpected loss (UL) of the Bank if exposure at given default (EAGD) is $120 million. You are required to show your calculations. Table 1: Bank Islamic Malaysia Berhad (BIMB): Key Financial Indicators 2020 Financial Ratios Return on Equity Return on Asset Cost to Income Gross impaired financing Financing loss coverage ratio Financing to fund ratio CASA to total deposit ratio Total capital ratio March 2020 12.7% 0.8% 51.5% 0.83% 184.8% 83.7% 35.9% 19.3% From Table 1 above, discuss BIMB's performance from the risk management perspective. (A) The Risk Informed Pricing Guidelines of BNM 2015 required Islamic banks to set sale price of murabaha based on expected loss (EL). What does this mean from the Shariah compliance perspective? (B) Islamic banking financing are generally more exposed to credit risks than business risks. Explain why. (C) $200 million Murabaha facility was extended by Adam Bank to Idris Corporation who placed an equivalent collateral with a 20 per cent haircut. At 2% probability of default (PD) find the expected loss (EL) and unexpected loss (UL) of the Bank if exposure at given default (EAGD) is $120 million. You are required to show your calculations
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