News Analysis

Title: off-keys downgrades Bahrain Moslem believe Source: CPI fiscal see to it: 08/03/2012 Overview The articles discuss the succeeding(a) expectant sic of Bahrain Islamic Bank that is rapidly dwindling collectible poor doing and a fail conjugation with Al salam Bank that path 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 massive Non Performing loans of somewhat 34 percent, its over image to gather borrowers that defaulted during the monetary crisis as well as its exposure to real number estate grocery that is facing huge challenges amid political squeamishness in the dry land , however its rating commode 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 as decl ine in net income 2. Deterioration of its assets quality due to huge non-performing loans and over exposure to heavy fieldal borrowers that defaulted during the financial crisis and further compounded by the Bankss diversified portfolio in the region outside its kinfolk market 3.

Political uncertainty in the Kingdom and the region at large and retardent of activities such as pull and real estate as a result of the crisis in the Kingdom which BIB is tremendously exposed to. Theories Risk solicitude Risks are uncertain give birth events that could influence the accomplishment of the Ba nks objectives, including strategic, operati! onal, 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 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 rent a full essay, order it on our website: OrderCustomPaper.com

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