Profit Equalization Reserve and Investment Risk Reserve: Issues and its Application
<span><em>The Islamic Financial Institution (IFI) is a unique financial institution </em><span><em>which has special characteristics, maqāsid, worldview, risk, and opportunity. </em><span><em>One of the methods used to mitigate the unique risk of Islam...
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| Format: | Article |
| Language: | Arabic |
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Universitas Darussalam Gontor
2019-12-01
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| Series: | Islamic Economics Journal |
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| Online Access: | https://ejournal.unida.gontor.ac.id/index.php/JEI/article/view/4005 |
| _version_ | 1797976962310864896 |
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| author | Muchammad Taufiq Affandi |
| author_facet | Muchammad Taufiq Affandi |
| author_sort | Muchammad Taufiq Affandi |
| collection | DOAJ |
| description | <span><em>The Islamic Financial Institution (IFI) is a unique financial institution </em><span><em>which has special characteristics, maqāsid, worldview, risk, and opportunity. </em><span><em>One of the methods used to mitigate the unique risk of Islamic banks is the Profit </em><span><em>Equalization Reserve (PER) and Investment Risk Reserve (IRR). However, </em><span><em>there are some issues related to PER and IRR. Some issues have been identified </em><span><em>in the Islamic Financial Services Board (IFSB) guidance note, including profit </em><span><em>smoothing and other issues yet to be discussed. This paper tries to observe issues </em><span><em>related to PER and IRR and their application in some Islamic banks using content </em><span><em>analysis method on their annual reports and/or financial statements. The paper </em><span><em>concludes that PER and IRR will bring bigger issues and risks to Islamic banks. </em><span><em>This leads the writer to suggest that the regulator reconsider its permissibility. In </em><span><em>addition, the paper also finds that the concept of PER and IRR has low acceptance </em><span><em>among Islamic banks.</em></span></span></span></span></span></span></span></span></span></span></span></span><br /></span> |
| first_indexed | 2024-04-11T04:59:21Z |
| format | Article |
| id | doaj.art-fb06e0d745144357bceaa39e5971cc74 |
| institution | Directory Open Access Journal |
| issn | 2460-1896 2541-5573 |
| language | Arabic |
| last_indexed | 2024-04-11T04:59:21Z |
| publishDate | 2019-12-01 |
| publisher | Universitas Darussalam Gontor |
| record_format | Article |
| series | Islamic Economics Journal |
| spelling | doaj.art-fb06e0d745144357bceaa39e5971cc742022-12-26T05:42:00ZaraUniversitas Darussalam GontorIslamic Economics Journal2460-18962541-55732019-12-015229531510.21111/iej.v5i2.40052042Profit Equalization Reserve and Investment Risk Reserve: Issues and its ApplicationMuchammad Taufiq Affandi0University of Darussalam Gontor<span><em>The Islamic Financial Institution (IFI) is a unique financial institution </em><span><em>which has special characteristics, maqāsid, worldview, risk, and opportunity. </em><span><em>One of the methods used to mitigate the unique risk of Islamic banks is the Profit </em><span><em>Equalization Reserve (PER) and Investment Risk Reserve (IRR). However, </em><span><em>there are some issues related to PER and IRR. Some issues have been identified </em><span><em>in the Islamic Financial Services Board (IFSB) guidance note, including profit </em><span><em>smoothing and other issues yet to be discussed. This paper tries to observe issues </em><span><em>related to PER and IRR and their application in some Islamic banks using content </em><span><em>analysis method on their annual reports and/or financial statements. The paper </em><span><em>concludes that PER and IRR will bring bigger issues and risks to Islamic banks. </em><span><em>This leads the writer to suggest that the regulator reconsider its permissibility. In </em><span><em>addition, the paper also finds that the concept of PER and IRR has low acceptance </em><span><em>among Islamic banks.</em></span></span></span></span></span></span></span></span></span></span></span></span><br /></span>https://ejournal.unida.gontor.ac.id/index.php/JEI/article/view/4005profit equalization reserve (per), investment risk reserve (irr), risk management, islamic banking. |
| spellingShingle | Muchammad Taufiq Affandi Profit Equalization Reserve and Investment Risk Reserve: Issues and its Application Islamic Economics Journal profit equalization reserve (per), investment risk reserve (irr), risk management, islamic banking. |
| title | Profit Equalization Reserve and Investment Risk Reserve: Issues and its Application |
| title_full | Profit Equalization Reserve and Investment Risk Reserve: Issues and its Application |
| title_fullStr | Profit Equalization Reserve and Investment Risk Reserve: Issues and its Application |
| title_full_unstemmed | Profit Equalization Reserve and Investment Risk Reserve: Issues and its Application |
| title_short | Profit Equalization Reserve and Investment Risk Reserve: Issues and its Application |
| title_sort | profit equalization reserve and investment risk reserve issues and its application |
| topic | profit equalization reserve (per), investment risk reserve (irr), risk management, islamic banking. |
| url | https://ejournal.unida.gontor.ac.id/index.php/JEI/article/view/4005 |
| work_keys_str_mv | AT muchammadtaufiqaffandi profitequalizationreserveandinvestmentriskreserveissuesanditsapplication |