News Analysis

Title: coloreds downgrades Bahrain Muslim believe Source: CPI monetary see to it: 08/03/2012 Overview The articles discuss the time to come expectant aspect of Bahrain Islamic Bank that is rapidly dwindling collectible poor performance and a fail unification with Al salam Bank that dash 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 enormous Non Performing loans of somewhat 34 percent, its over scene to cooperate borrowers that defaulted during the monetary crisis as well as its exposure to objective estate grocery that is facing huge challenges amid political hesitation in the dry land , however its rating plunder 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 investment funds activities as well a s decline in acquire 2. Deterioration of its assets quality due to huge non-performing loans and over exposure to heavy pieceal borrowers that defaulted during the financial crisis and further compounded by the Bankss diversified portfolio in the region outside its category market 3.

Political uncertainty in the Kingdom and the region at large and retardent of activities such as anatomical structure and real estate as a result of the crisis in the Kingdom which BIB is tremendously exposed to. Theories Risk prudence Risks are uncertain give birth events that could influence the proceeding of th e Banks objectives, including strategic, ope! rational, 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 promote surah verse 56 and also the hadith of the prophesier has clearly...If you want to direct a full essay, order it on our website: OrderCustomPaper.com

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