Risk Measures in Islamic Banks

Mouna Moualhi¹ and Monia Ben Ltaifa^2,

¹Faculty of Economic Sciences and Management of Tunis El Manar, Tunis El-Manar University, Tunisia

²Faculty of Economic Sciences and Management of Sfax, Sfax University, Tunisia

Cite this paper:
Mouna Moualhi and Monia Ben Ltaifa. Risk Measures in Islamic Banks. International Journal of Business and Risk Management. 2018; 1(1):1-8. doi: 10.12691/ijbrm-1-1-1

Abstract

The aim of this study is to examine empirically the variables of the risks of Islamic banks in the Gulf countries. Methodologically, we use a sample of 23 Islamic banks during the period from 2007 to 2012. From the empirical findings, we can show that the variable volatility of return on assets and the regulatory variable explains the banking risks. We have also shown that size influences banking risks. In addition, we find that the size influences banking risks. It has allowed us to see that the big banks can invest in more risky projects.

Keywords:
Islamic banks risks volatility of return on assets volatility of return equity

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