Islamic Bank Balance Sheet Analysis
- After identifying an Islamic bank,
students will retrieve the relevant financial data (see below) from the annual
financial statements and reports of the bank (Usually found in the investor
relations on the bank’s website). The
data should cover at least 5 years.
- List and discuss briefly the different
modes of financing available for Islamic banks to carry out its financing and
- After presenting the different contracts, students should retrieve, for each year:
- The financing and investment
assets breakdown by type when available (Murabaha, Musawama, Ijarah, Istisna’a,
Salam, Mudaraba, Musharaka….etc).
- Net income from financing activities breakdown (by activities).
- Customers’ Deposit (current accounts) and their types (sectors if available).
- Unrestricted investment accounts holders and their types and sectors (if available).
- Share of capital.
- Legal Reserves.
- Risk Reserves.
- General Reserves.
- Total regulatory capital.
- Capital Adequacy Ratio (and its comparison with Basel III Committee and Qatar Central Bank guidelines and minimum requirements).
- Student should then present the evolution of the
bank Total Assets, and any other data or information they deem
necessary, in a graph covering at least 5 years.
- Student should then present the breakdown in an
appropriate graph highlighting the evolution of the share of different modes
of financing (also from the total financing assets and from total
assets) and the Share of deposit, capital and unrestricted
investment accounts (also from total liabilities) over the selected years.
- Students should then discuss financing and investment assets breakdown in light of the ideal Islamic banking model based on the profit and loss sharing paradigm and briefly explain why Islamic Banks adopt such a practice.
The project must be written in Times New Roman font 12, double-spaced. All tables and graphs must be well labeled and explained.
The project must include:
A cover page listing the students’ names and the project title.
A table of contents.
A List of Tables and Figures
Main headings (introduction, conclusion, sections) should be in 12 point and bold typeface.
A list of references.