News Analysis

Title: doggeds downgrades Bahrain Moslem believe Source: CPI fiscal see to it: 08/03/2012 Overview The articles discuss the future(a) expectant blank space of Bahrain Islamic Bank that is rapidly dwindling collectible poor capital punishment and a fail nuclear fusion with Al salam Bank that focusing 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 spacious Non Performing loans of somewhat 34 percent, its over depiction to second borrowers that defaulted during the monetary crisis as well as its exposure to real(a) estate grocery that is facing huge challenges amid political suspicion in the dry land , however its rating washbasin 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 activ ities as well as decline in pay 2. Deterioration of its assets quality due to huge non-performing loans and over exposure to heavy constituental borrowers that defaulted during the financial crisis and further compounded by the Bankss diversified portfolio in the region outside its rest home market 3.

Political uncertainty in the Kingdom and the region at large and retardent of activities such as reflexion and real estate as a result of the crisis in the Kingdom which BIB is tremendously exposed to. Theories Risk worry Risks are uncertain give birth events that could influence the sk ill of the Banks objectives, including strat! egic, 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 sharia law law and principles and other events that may result in a loss to the Bank, Risk management is evident in Islam and support surah verse 56 and also the hadith of the prophesier has clearly...If you want to get hold a full essay, order it on our website: OrderCustomPaper.com

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