News Analysis

Title: temperamentals downgrades Bahrain Islamic believe Source: CPI monetary see to it: 08/03/2012 Overview The articles discuss the future tense expectant spotlight of Bahrain Islamic Bank that is rapidly dwindling collectible poor surgical process and a fail uniting with Al salam Bank that government agency 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 commodious Non Performing loans of somewhat 34 percent, its over scene to assist borrowers that defaulted during the monetary crisis as well as its exposure to realistic estate grocery that is facing huge challenges amid political perplexity in the dry land , however its rating croupe 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 enthronisa tion activities as well as decline in wampum 2. Deterioration of its assets quality due to huge non-performing loans and over exposure to heavy divisional borrowers that defaulted during the financial crisis and further compounded by the Bankss diversified portfolio in the region outside its station market 3.

Political uncertainty in the Kingdom and the region at large and retardent of activities such as social structure and real estate as a result of the crisis in the Kingdom which BIB is tremendously exposed to. Theories Risk counselling Risks are uncertain give birth events that co uld influence the acquirement of the Banks o! bjectives, including strategic, operational, financial 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 boost surah verse 56 and also the hadith of the prophesier has clearly...If you want to thwart a full essay, order it on our website: OrderCustomPaper.com

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