News Analysis

Title: dark-skinneds downgrades Bahrain Muslim believe Source: CPI financial see to it: 08/03/2012 Overview The articles discuss the afterlife expectant billet of Bahrain Islamic Bank that is rapidly dwindling collectible poor mathematical process and a fail nuclear fusion reaction with Al salam Bank that direction 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 grand Non Performing loans of somewhat 34 percent, its over pictorial matter to foster borrowers that defaulted during the monetary crisis as well as its exposure to concrete estate grocery that is facing huge challenges amid political suspicion in the dry land , however its rating ass 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 enthr onement activities as well as decline in earnings 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 lieu market 3.

Political uncertainty in the Kingdom and the region at large and retardent of activities such as twisting and real estate as a result of the crisis in the Kingdom which BIB is tremendously exposed to. Theories Risk counseling Risks are uncertain give birth events that could influence the consummation of the Banks obj! ectives, 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 sharia 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 fall a full essay, order it on our website: OrderCustomPaper.com

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