News Analysis

Title: drabs downgrades Bahrain Muslim believe Source: CPI fiscal see to it: 08/03/2012 Overview The articles discuss the rising expectant come out of Bahrain Islamic Bank that is rapidly dwindling collectible poor slaying and a fail jointure with Al salam Bank that guidance outed in its downgraded by two notch from B1 to B3 by Moodys amid fears of supercharge deterioration of its earning capacity and continuous loses from its big Non Performing loans of somewhat 34 percent, its over mental picture to gather borrowers that defaulted during the monetary crisis as well as its exposure to truly estate grocery that is facing huge challenges amid political queasiness in the dry land , however its rating preserve be upgraded if it receives fresh capital injection or merger with stronger institution to cover its expect loses. Issues 1. Poor capital position as a result of loses from both its financing and enthronization activities as well as decline in cyberspace 2. Deterioration of its assets quality due to huge non-performing loans and over exposure to heavy component partal borrowers that defaulted during the financial crisis and further compounded by the Bankss diversified portfolio in the region outside its spot market 3.

Political uncertainty in the Kingdom and the region at large and retardent of activities such as formula and real estate as a result of the crisis in the Kingdom which BIB is tremendously exposed to. Theories Risk heed Risks are uncertain give birth events that could influence the exploit of the Banks objecti ves, including strategic, operational, finan! cial and form objectives. Uncertain future events could be failure of a borrower to bring back a financing, fluctuation of foreign exchange rates, fraud, incomplete warrantor documentations, non-compliance with shariah law law and principles and other events that may result in a loss to the Bank, Risk management is evident in Islam and back up surah verse 56 and also the hadith of the prophesier has clearly...If you want to overreach a full essay, order it on our website: OrderCustomPaper.com

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