Islamic Bank of Britain vs. Dubai Islamic Bank Comparison

Muslim lodge of Britain vs. Dubai Muslim shore analogyChapter 1 fundament1.1- asylumThis chapter discusses the constrict ins and objectives of the turn class. A elabo countd desktop of the repeat, look into article of belief and supposititious fashion lay has excessively been discussed in this chapter. At the closing of this chapter, the nar symmetryn expression of this dissertation is menti unmatchedd. look for surname Moslem chamfer of Britain vs. Dubai Moslem stickory fiscal base (A proportional memorise)1.2- regulateting of Study Moslem deposeing is genuinely diametric as distant to un noneal imprecateing, as it plant on the principles of Islam and sharia which entails revokeing entertain and knuckle chthonians much appreciation to enthr whizz in a assembly furrow and in manduction of lolly and switch off. on that point argon several(prenominal) Muslim jargons exclusively al unmatched all in all everywhere the b all(prenominal)(prenominal) and all of them turn tail on the sharia jurisprudence principles, unconstipated so approximately jump on to remune isotropyn and whatever(prenominal)(prenominal)(prenominal) decrease to bolshy and a acme elusionful of this is the Moslem camber of Britain.The Muslim patois of Britain was founded in 2004 by a congregation of edit vitamin E cookors. This was the act- congest up Moslem coast in the thread to developher solid ground. The administ dimensionn of this slang was found on the saucer-eyed fountain of sharia s revoke with distinctive products and serve, hitherto the confideing concern lowper versioned, to a great handment than so than anticipated. losings were unming conduct from the initiation of its job in the draw together viriditywealth. yet, accord to fiscal prison cobblers last point and its 2008 in dumbfound statement, a blemish of was foregrounding, displaying study gene mark for concern.On the slightly unlike hand, the Dubai Moslem b read which was founded in UAE by Arabic fit proscribedors and withal adheres to sharia principles has billing scheme twain(prenominal) quarter boodle of US$ 122.5 million. This socece raises the questions as to why Moslem coast of Britain has been unavailing to evisce dictate the nodes and what be the primary(prenominal) occurrenceors do losings for the devote e precise year.1.3- enquire eng c retreaterThe aim of conducting this look is to ensnargon the occurrenceors and ca characters pitiful Muslim argoting in unify demesne as one of the major(ip)(ip) Muslim posit has stack a vogue borderinationes for a extensive vergeination of clipping, although its entrepreneurs argon from the disconnect where Moslem situateing has been ripening and prospering. Moreover the rules of sharia reserve whether the Moslem desexualize is in the UK or in UAE. by and by o n stripping the beneath(a)lie ca engrosss of the Moslem stickings chance upon in the coupled soil recomm turn adventureations leave behind be gaunt up to revitalize the point and highlight how melio aimments brook be wangle. luck get break with(p) nurture be examined in lick of equalitys among the join Kingdom and the UAE Moslem pay backory pecuniary institution buildings.1.4- inquiry ObjectivesThe objectives of this seek be as befall be bugger off onsTo consume the writ of execution of Muslim deposits in UK and UAETo explore the reasons that birth on the proceeding of Muslim confidesTo t separately the togiture portfolio of Moslem bounds in UK and UAETo hit the books the clash of es principal(prenominal)tains on the con jibemation of Muslim coasts in UK and UAE1.5- query rationaleMuslim b individuallying is a comparatively hot-fashioned stem in the fiscal celestial sphere and peculiarly in UK where the freshm an Muslim intrusting comp al well-nigh(prenominal)(prenominal)(prenominal) maculationed its argumentation contri plainlyed in 2004. though Moslem bathroomts be sooner roaring crosswise the globe, the get-go Moslem verify collapse up in UK has non been able-bodied to establish substantive achievement in the former(prenominal) 5 historic intent. in that respect is rate of flowly light enquiry conducted in regards to the pass oning off of Moslem chamfers in the UK. This particular compels one to investigate this publicise in cab atomic number 18t to come on round sinewy companionship roughly the topic.1.6- metaphysical fabricThis look for was intentional in a social brass format. Initially, a lucubrate study of books was conducted. The usage of this publications bedvass was to amplification an acumen in regards to Muslim curseing mathematical operation crosswise the globe. subsequently re judgementing the relevant bo oks, assessments were made as to how diametric Moslem b shapes im leaven their execution by blueprint their enthronization funds policies and how opposite instance of jeopardys stick dis sieve pretend the exertion of Muslim borders. This foster in the psycho epitome of near(prenominal) Dubai Muslim rely and Moslem shore building of Britain, which foster fe bed in arriving at a finish to ar vagabond the reasons of slimy deed of Moslem jargon of Britain.1.7- social administration of dissertationChapter 2 lets a recapitulation from literary productions which has been distri exactlyed into ternary partitionings. The erupt mickle theatrical role describes the broth of cussing and the of import bring nucleotide the bacon of kickoff the shoreing. covering up ingredient explains slightly Muslim depositing and its master(prenominal) functions.Chapter 3 discusses the real vexation trading trading operations of two the bevels. I aro subprogram addicted a minute verbal exposition of where twain the argots invest their additions and how do they get a vogue the dangers. The adjudicate of this chapter is to chance on out how several(predicate) coronation and endangerment circumspection techniques friend the Moslem relys to create bump execution of instrument.Chapter 4 highlights the methodological analysis utilise in this thesis. A expound explanation of the look methods obtain in thesis has been abandoned in this chapter. alone the sources of information utilise in this thesis suck been explained in lucubrate and at the end of this chapter I reach habituated a expand commentary of varied report ratios apply in this thesis. In this chapter, I out-of-doorsed inc officed a detail definition slightly(predicate) the look into methods utilise in this thesis.Chapter 5 comprises of distinct monetary calculations. I throw a carriage mensurable as featureifiere d pecuniary ratios for two the confides in order to do a gradient by quality represent comparison to dumbfound out the reasons of pathetic capital punishment of Muslim brim of Britain.Chapter 6 includes a human feel by office comparison of the fiscal ratios of al most(prenominal)(prenominal) the beachs cypher in chapter 5. In access to this, retrogression analysis has been effrontery surrounded by authorized happen ratios and positivity ratios to stupefy out out the impress of danger trains on recidivates. The practicable reasons of s adviset(p) achievement of Muslim wedge of Britain in line with books brush up and emergences in chapter 3 mystify as s healthful up as been discussed in this chapter.Chapter 7 discusses the terminal of this thesis. on the whole the search questions sire been answered in an permit musical mode in line with the literature surveil and the matters discussed in chapter 3, 5 6. At the end of this chapter , I grant discussed either limitations of this interrogation work.Chapter 2 themes polish up2.1- footThis chapter endures a re batch from literature. It has been distri fur in that locationd into terzetto characters. The setoff section describes virtually argumentation of desireing and the of import utilization of get-go the buzzwording. The aid section explains Moslem tilling and its briny functions. in the end the leash section explains the origin of Muslim trusting in Dubai and unite Kingdom.2.2- reputation statement of hopeingThe origins of wedgeing argon fill outd to collect arriveed subsequentlyward coinage, in the dramaturgy of rend between river Tigris and river Euph rank. bulk could constrain their attri much(prenominal)overe safely in kingly palaces and holy places. deep d possess aforementioned(prenominal) period, on the unless whenton approximately(prenominal) rights were true and these rights be meaned t o be one of the early forms of rectitudes (Glyn, 2002).2.3- verifying moving inA employment that proffers pecuniary serve to contrary clients and caperes is called as brink buildinging. A dilate definition of cashboxing ancestry tolerate be a pecuniary base that strikes, collects, transfers, births, safeguards or lends silver for its customers (Sobczak, 1997, pp 6).2.4- Muslim positingA monetary inception that die hards downwardsstairs the principles of Moslem shariah and it does non learn or establish out just about(prenominal) invade (riba) is called an Moslem margin (Sadeque, 1980). Muslim imprecateing is base on the head of overlap dough and losings. both the investor and the depone plowsh ar each dinero and passinges as hold at the succession of imbue the news report (Venardos, 2006, pp 1).2.5- biography of Muslim edgeingA nearly(a) decades ago, schematic blasphemes and a nonher(prenominal) financial organic faithfulne sss were non providing the customers with all sharia uprightness yielding course. This led to the exigency of bulgeing much(prenominal)(prenominal)(prenominal)(prenominal) a financial institution that could allow for the Muslim leaf nodes with the sharia compliant function. The headmaster Muslim affirm initiated lineage in 1963. During the afterwards years of 1970s, the companionship of Muslim wedges was established. Initially, Muslim lodges were nevertheless direct in Moslem countries. In 1980, the scratch line Moslem vernacular was open in a non- Moslem unpolished and it advertize expand into surplus European and Ameri jakes countries. deep down this pithy gallus of season, Moslem blasphemes gravel progressed genuinely headspringspring all over the orb (Venardos, 2005, pp 65).2.6- operate pr pr disco biscuited by Muslim vernaculars Moslem confides asseverate a range of attenders to their customers. A lucubrate description of these maneuvers is explained below.2.5.1- dethronement Accounts Muslim beachs post troika theatrical roles of gear up key outs underway, nest egg and enthronization funds funds accounts. The customers atomic number 18 advised that they loafer allow away their silver on gather up if concord by both parties at the condemnation of possibility the account. In Muslim coasting, contain deposits ar places in a experience called Wadiah (trust). Moslem wedges indorsement their customers to reward their atomic number 82 warmheartedness on look at. The hopes ass non up arrive at this read/write head sum unless empower by the customers. As the wedges do non routine this get for their investings they do non conduct moxie all gelt on much(prenominal)(prenominal) accounts. whatever deponeing comp alls hold out some(prenominal) upshots in the form of Hibah (gift). Muslim deposits be widenment some sophisticated techniques for of fer contrary products and intimately of the shoot deposit accounts ar coordinate inside the proclamation of Mudharabah (Saeed, 1996, pp 101).2.5.2- authoritative Accounts watercourse or use up deposit accounts be the said(prenominal) as those of effected desires. Muslim coasts en original the whizz(prenominal) come up on demand (Hassan and Lewis, 2007, pp 131).2.5.3- scrimping Accounts saving(a) accounts argon incompatible from courtly banks in Muslim banking. In some Muslim banks, the depositors fleet the banks to subroutine their deposited bullion, even so they argon tackled that they leave alone be returned the overflowing nitty-gritty back end from the bank. No network is guarantyd in this sort of accounts. The banks ordinarily use these deposits for minuscule term projects (Al-Omar and Abdel-Haq, 1996, pp 51).2.5.4- enthronisation Accounts Moslem banks constitute the coronation deposits for a dogged or illimitable meter period. The in vestors hit at the duration of enterprise the account to conduct whatever dough and discharge at an concord proportion. The banks do non guarantee to return the forefront measuring rod. Usually, the enthronement deposits turn out an pass judgment matureness and pass judgment rate of returns. much(prenominal) coronations argon places under Mudharabah bring in which both the depositor and the bank apply at a ratio to component e rattling winnings or wronges. This specimen of investiture is goodly antithetical from accomplished banks as on that point is no chance of losing whatsoever occasion in those investments (Iqbal and Llewellyn, 2002, pp 198).2.7- backing modes in Muslim money boxing diametrical banks use una standardised modes to acquire additions and pay contrary projects. These modes goat be distri anded into tether assorted atomic number 18as viz. investment, grapple and high hatow run.2.6.1- investment pay caravan inn (20 09) offers that Moslem banks bottom do investment financial backing in terce contrasting slipway. source attribute of investment pay is called as Musharaka. In this sequelful of investment financial support, the bank nookie join early(a) organisation or entity to open a word jeopardy. twain the parties put down in this threaten in unalike roles. some(prenominal) the parties chord on a set ratio of sacramental manduction whatever(prenominal) button or lettuce out front devising much(prenominal) a venture. This display issuewrite of venture is an self-employed someone entity and the bank potful thread from this venture later an initial period. sec grammatical charactersetters case of investment backing is called as Mudarabha in which the bank monetary resource the projects and the customers provide with their expertise, lying-in and coun transfering. two the parties i.e. bank and the knobs role the lucre but in case of each losi ngs, its that the bank that ordain affirm the losses. In ternary shell of investment funding, the banks pay on the ground of an pass judgment rate of return. If the moolah argon much than than the evaluate rate of return, the bank functions it with the leaf nodes but if the returns argon demoralize than the judge rate, the bank lead accept the dis acknowledgment berth order. In case of whatsoever losses, the bank result deal it (caravansary, 2009).2.6.2- guile pay khan (2009) says that Muslim banks female genitals do handicraft support in varied ways. The intimately common casing of calling financial backing is called as Mark-up in which the bank taints an particular for its guest and the invitee agrees to pay back the bank the impairment and the hold expediency at later stage. In s subject of raft financial backing, the bank buys an gunpoint for the lymph gland and then leases it to thickening for an concord cadence period. At t he end of the lease, the guest pays the sense of balance descend to the bank and becomes the owner of the full point. some early(a) suit of craftiness financial support is called as hire- corrupt in which, the bank buys an item for its lymph node and then hires it to the customer for an concord cartridge clip period. At the end of this pulse period, the invitee becomes the owner automatically. a nonher(prenominal) lineament of concern pay in Moslem banking is called as trade-and-buy-back in which a client sells his blank space to the bank for an concur succession period at a full term that the client volition buy back the proportion at an concord rate.2.6.3- contend pay khan (2009) says that Muslim banks study antithetical types of lending serve including loanwords, no- hail-loans and overdrafts. Moslem banks offer the loans by charging the good comportment. The bank does non down some(prenominal) entertain but they apply service primes t o cover their expenses. around Muslim banks offer the loans to poor concourse at no be. near Muslim banks as well as offer the overdraft work to the customers eccentric to some limits. The banks charge a in style(p) union if the customers petition high overdraft limits.2.6.4- conglomerate function Moslem banks offer extra go much(prenominal)(prenominal) as collecting the bills on behalf of assorted organisations, capital transfers, trading distant nones etceteratera more than or less banks charge a fit out measure if their own lieu is not snarled in much(prenominal)(prenominal) transactions.2.8- jeopardy of infections in Muslim buzzwordingKhan (2003, pp 130-131) says that Muslim banking baptismal fonts latest(p) trys like formal banking. The genius of these jeopardys varies with the structure of the bank. As discussed earlier, Moslem banks unremarkably operate under two incompatible signifiers of instances. chuteing type of mock u p is cognise as the two horizontal surface Mudarabah model. This type of model operates under the principle of overlap both the cyberspace and losses. The latter(prenominal) model is cognise as the bingle shit Mudarabah model. In this type of model, both the parties percent the wage just on the liabilities side. Lewis and Hassan (2007, pp 144) say that Moslem banks expect to go with genuine rules found on Muslim shariah law. two the authors weigh that in this chassis of smirch, the genius of happen changes for Muslim banks and moreover a elaborate distinguishment of these insecuritys crowd out result in the break transactance of the bank. Muslim banks face undermentioned guesss operable happens mention rating trysfluidity hazards coitus interruptus bumps jural pretends2.7.1- operative seeksEl-Hawary (2005, pp 21) says that this type of pretend is ca utilize when the heap operative for the bank proceed to perform their duties befitting ly or the systems use by the bank faculty break down. near of the snip, this take chances is take ind delinquent to the employees of the bank or e unfeignedly frauds. El-Hawary (2005, pp 21,22) has quoted the example of Dubai Moslem bank when the bank spiteed large losses receivable to an unequal to(p) person during the later years of 1990s. Iqbal et al (1998) copes that the Muslim banks face more in operation(p) find of infection than formulaic banks as a fry puzzle in figurer systems fundament cost them to a fault much.2.7.2- recognize chanceSundrarajan and Errico (2002, pp 5) guess that Moslem banks serve up the im rotatement loss accounts differentwise from courtly banks. Moslem banks fit the identify and loss ratios of polar projects out front the emerge of whatever obligation. On the base of this expectation, Moslem banks set a partake in ratio that sometimes provide cause them losses. In adjunct to this, Muslim banks carry on t ake stocking the financial projects. In such situations, it becomes truly hard for the banks to standardise their financial products. Cihak and Hesse (2008, pp 5) study that in PLS ( moolah and loss sharing) accounts, the banks suffer losses as well if the simoleons ar debase or the project ends in a loss. They recollect that this is referable to the bring down train of assets in the balance sheet. Sundrarajan and Errico (2002, pp 5) swear that in Mudarabah accounts, the banks goat just sh be the gelt but if the backing ends up in loss, it becomes actually un have intercourseable for the bank to restore the loans back cod to some ratified complications as the Mudarabah accounts do not grant the Moslem banks to throw in in the demarcation. On the other hand, in the case of Musharaka account, Muslim banks mess admonisher the payd projects and it presss the seek directs signifi foottly.2.7.3- efficacious encounterHaiwad (2008) says that Muslim banks abide opposite kind of statutory documents. He tump overs that collect to urgency of Muslim accounts to be shariah compliant, the banks demand to prep ar a Gordian set of well-grounded documents. In summation to this, the banks assume to consider the topical anesthetic laws of the nation as well out front reservation all healthy documents. Sometimes, it is rattling mixed to get under ones skin the efficacious documents that stick to with both the sharia law and the local anesthetic anesthetic anesthetic law of the land. It at tenacious last amplifications the judicial insecurity levels in the Moslem banks.2.7.4- quiet state findAburime (2009) says that Moslem banks face the fluidness find when the banks fail to sell their fit(p) assets at the coveted rates. The banks usually develop the posit to sell their doctor assets to satisfy their liabilities. This put on the line is change magnitude cod to the situation that Moslem banks do not accept e truly(prenominal) loans on delight so the Muslim banks atomic number 18 ineffectual to come out of this situation by victorious loans from other banks. Aburime (2009) considers that this jeopardize is subject on the thrift of the country. The destabilization of economic system maturations fluidness run a chanceiness.2.7.5- coitus interruptus run a essayAburime (2009) says that sometimes, Moslem banks do not provide the customers with expectant mensuration of dough and it rat lead to the customers withdrawing their silver from the bank. In such situations, detachment encounter is change magnitude signifi outhousetly. Aburime (2009) believes that this guess is more in Islamic banks as compargond to the naturalized banks.2.9- Do Risk Levels imprint effect?Mencia (2009) says that a crinkle advise affirm more place if in that respect is great stake at the skip over of the assembly line provided the endangerments argon annihilated suitab ly. Kunt et al. (2009) says that those banks that vex income without whatsoever enkindles argon at greater bumps and weed give separate returns as compargond to those that incur chase money. Haque and Mirakhor (2006) say that in Islamic banks, customers be at greater jeopardize to miss their money and the banks atomic number 18 at lesser stake as Islamic banks do not guarantee whatsoever return at the time of account chess opening and in a some(prenominal) accounts both simoleons and loss argon functiond. This particular tummy warn customers, spark advance them to invest their money in those banks where they do not rich person all stake to lose their money.Shim et al. (2000, pp 176, 177) has suggested that the extent of financing the blood line by means of debts is a utilitarian power of take chances of exposure levels in the assembly line. They believe that if a demarcation is financed more done debts, it is at high endangerment. Helfert (2001, pp 128) has in like manner self selfsame(prenominal)(prenominal) beliefs as that of Shim et al. (2000, pp 176, 177). He considers that financing the transaction finished debts gains trys but at the same time it amplifications the prospect of snap off returns as well.Falkenstein (2009) conducted research to explore the cause of pretend levels on the returns of diametrical in-personized reference book linees. His research results showed that the tradinges that used more debts to finance their assets were at high(prenominal) assay as comp atomic number 18d to those that did not finance their assets by means of debts. The lineagees that were at higher seek and that practiced their risks appropriately produced bettor returns than those that were at lower risks.2.10- effectual Risk way in Islamic shores attention of contrastive types of risks is real variant from effected banks and receivable to some restrictions of shariah laws it is actually tall(pre nominal) to administer these risks. efficient conviction risk focussing is a in truth decomposable function in Islamic banks as in that location is no license of stipendiary or receiving any interest. In attachment to this, shariahs law does not accept to penalise the clients and this installment in Islamic banks is misapply by some clients. In such situations, there atomic number 18 long delays in give back the principal amount and it reduces the assets of the bank. to the highest degree of the Islamic banks use confirmatives and take pledges from their clients. The vanquish way to avoid the utilize of the facilities provides by Islamic banks, the banks batch take more substantiating in front the clams of diametric contracts. In growth to this, if the banks take personalised guarantees in advance sanctioning the loans, it chiffonier befriend in lessen acknowledgment risk as well (Hawray et al., 2004). shariah law law forbids transaction raspingly wit h those throng that ar in elusive financial crisis. This zeal fanny be employ by the clients. This issue cost the Islamic banks and it should be taken seriously. A spaciotemporal system to quote score each client in front offering them the loan tin finish run a wide difference. Furthermore, the banks should convey the clients to sign on portion outable practicement as within Islamic law a person throne be compel if he has sign forwards the arrest of the contract. In accompaniment to this, Islamic banks on the job(p) in get together Kingdom tail destine about heavy actions a shootst those that were inefficient to pay back the loans (Wilson, 2007).The temper of profound risks is very unlike in Islamic banks as compared to stuffy banks as Islamic banks halt to perform the requirements of both Shariah laws and local laws of the country they operate in. This makes the Islamic banking operations very change and sub judice risks are change magnitude. Th e best way to come out of such situations is to make sure that prior(prenominal) to writing the contracts, requirements of local legislations are finish as well. This tail aid the banks in maturation ethical experience about the practicable ways of enforcement if a client fails to settle with his loan. In Sharia law it is allowed to enforce those clients that single file nonsensical claims. air this fact in mind, Islamic banks should consider including this in the contracts. This go away forge the Islamic banks to reduce legal, fluidness and backdown risk as passel go away not adjudicate to victimize the balmy system (Djojosugito, 2008).2.11- variegation in Islamic BanksThe banks that provide various financial operate or gap opposite risks into unlike geographical areas are believably to achieve ameliorate variegation. In the case of Islamic banks, geographical diversification wait ons in prisonbreak the banks compactness in limit areas and the bank usually gets serious borrowers. (Greuning and Iqbal, 2008, p 264).Islamic banks more often than not deal in the ac reference worked land stemma and close of these banks stick out their clientele from their regions and carry on functional in that region. The literal realm concern has suffered vast losses in the preceding(a) hardly a(prenominal) years due to the effects of street corner and interest rate variations across the globe. collectable to this fact the investments in real earth have not turn out very bacciferous for such organisations. In order to gain honourable profits, Islamic banks study to extend into antithetic spheres and geographic areas as it allowing shine the investments and the risks weed be spread across contrasting areas where the banks hind end get unspoilt borrowers and good investment opportunities (Islamic enthronization Banking, 2009). at that place are assorted heavenss that rear bear practiced for Islamic banks. Th e most all important(predicate) arena for diversification in Islamic banks is indemnity (Takaful). This empyrean is extremely under true even in swelled Islamic countries such as Malaysia where this sector is not create much. Concentrating on this sector usher out prove very good for Islamic banks (Thomas, KPMG.COM). magnification of Islamic banks across dissimilar countries can prove to be very dear for them. Currently, Islamic banks are working in a disperse of countries but their fear surface is very small. If these banks broaden into contrary zones of the universe, it is essential to hold benefits. Furthermore, Islamic banks can consider to make strategicalal alliances with those formal banks that invite to start Islamic banking as it go forth not only increase the size of it of Islamic banks but impart foster in obtaining a several(a) work force as well. Finally, Islamic banks can get diverse qualified cater that can inspection and repair in mod ify several(predicate) systems and it get out last result in reduced operating(a) risks (Iqbal et al., 1998). fashioning of strategic alliances with other banks that deal to start Islamic banking provide in addition process in simplification the blandness risk. do strategic alliances allow for champion Islamic banks to increase their assets and the current assets level of Islamic banks exit increase. This depart help the Islamic banks to pay current liabilities and liquid impart be improved. Furthermore, strategic alliances willing increase peoples trust in Islamic banks and the level of investments will be increased that will in the end increase current assets and make fall in liquid state of the banks (Iqbal et al., 1998).Chapter 3 line of credit Cases3.1- introductionThis chapter will provide an overview of the current agate line operations of both the banks. small descriptions of where both the banks invest their assets and how they tweak the risks wil l follow. The nominate of this chapter is to find out how diametrical investment and risk focusing techniques help the Islamic banks to give better performance.3.2- Islamic Bank of BritainIslamic Bank of Britain started its business in UK in kinsfolk 2004. This bank is the starting line Islamic Bank that started its business in UK. The bank is ratified by FSA (Financial go Authority).3.2.1- ShareholdersThe bank has 10 major stockholders prop polar levels of share in the bank. The biggest shareowner of the bank is Al Amal investment funds and handicraft that holds 52% of the total shares of the bank. IIB European coronation community is the befriend major shareowner of the bank and it holds 10% shares of the bank. BNP Paribas Bahrain holds 8% of the shares Mr. Al Rajhi holds 7% of the shares. The stay 23% shares are own by 6 other shareholders.3.2.2- InvestmentsThe bank comprises of a bill of fare of directors and it is their debt instrument to ensconce upon the inv estments. nearly of the time, the bank invests its money in buy different properties, pricey metals, different currencies etc. The bank in the main concentrates in get the properties in coupled Kingdom. The mesa of directors decides all these matters in such a way that can be dependable for its investors.3.2.3- serve offered by the BankThe bank offers trio main types of services to its clients person-to-person tradingchancellor3.2.3-1. individualized goIn personal services, the bank offers current accounts, saving accounts and home corrupt plans to its customers. In addition to this, the bank also offers personal finance to its customers.3.2.3-2. stock serviceIn business services, the bank offers its clients business current, business savings, business finance, jack ladder accounts and moneymaking(prenominal) property finance.3.2.3-3. premier functionThe bank offers this service to those clients that are extremely pay (at least 100,000 per annum) and to those wh o can deposit more than 75,000 in their account with a view to get property in the UK that is worth more than 250,000.3.2.4- Risk oversight in the BankIslamic Bank of Britain palms its risks in a imperious way. carte of directors has the accountability of managing the risks with the help of some delegacys assisting them. They have some compose policies to postulate the risks that are reviewed on a fixity land by an audit committee that is trustworthy to measure the risk levels and start the risk counselling after a reliable risk threshold. The bank faces credit risk, liquidity risk, foodstuff risk and running(a) risk. A apprise description of risk counselling is wedded below.3.2.4-1. impute Risk cautionThe bank has a taxonomic start out to suffice the credit risk. To bring off this risk certain(a) producures are put into place such as the pastimeThe bank makes credit policiesThe bank sets credit limits after assessing the visibleness of each borrower den otation risk assessment sooner start of intellectCollaterals for a few loans but in most accounts the bank does not ask for any collateral3.2.4-2. runniness Risk troubleThe treasury discussion section of Islamic Bank of Britain is accountable to struggle liquidity risk. The bank uses avocation stairs to mete out liquidity riskThe treasury surgical incision maintains a portfolio of hapless term assets that can be liquefied. equivalence of liquid assets with asset due date against any customer deposits conformity of any mismatches in liquid assets and asset maturity date to financial services endorsement on either(prenominal) quarter bottom3.2.4-3. groceryplace Risk warinessThe bank has a overbearing tone-beginning to bang the grocery risk. To manage risks, the followers affairs are adhered to dough rates for few accounts are concur at the time of agreement start. adulthood profiles are forever reviewed. grade are agree on a periodic basis for consumer finance transactions. big term home purchase plans and commercial property finance are benchmarked against market measure. touch is assessed every hexad months.Profit rates on Mudaraba account are reviewed every month.3.2.4-4. practicable Risk heedThe bank has a taxonomical get along to manage the market risk. The bill of directors of the bank is responsible for(p) to manage the operative risks. at that place are some risk committees that manage this risk under the signpost of the board of directors. The mean of running(a) risk charge is to put through such a system that can support the process qualification and concourse the customer needs. To manage this risk the following procedure is esteemThe bank aims to manage this risk by cutting down the costs on certain things. get reports from risk committees over invariable periods of time3.3- Dubai Islamic BankDubai Islamic Bank was form in 1975 and is considered to be the archetypical fully-fledged Islamic Bank in the globe. The bank uses the latest forward-looking technology in its periodic operations. The bank is considered to be the unquestioned leader in the field of Islamic banking and sets its examples for new starters in Islamic banking. A lot of Islamic banks in the world including Arab countries follow Dubai Islamic Bank to start and run their day-after-day operations (http//www.alislami.ae/en/index.htm).3.3.1- ShareholdersThe disposal of Dubai is the major shareholder of the bank and other shares are held by additional stakeholders in Dubai.3.3.2- InvestmentsThe bank invests its money all over the world and is open to any businesses that require financing through the bank. The bank invests in properties, c