The Central Bank of Bahrain Governor Rasheed Mohammed Al Maraj urged global Islamic bankers be more risk-sensitive in uncertain economic conditions
Al Maraj stressed the importance of up-to-date risk management practices, high awareness levels, and risk mitigation in place.
“The banks should increase stress-testing frequency in order to fully understand the weak links and be prepared for the worst-case scenario in the current uncertain economic environment. Please note that being risk-sensitive does not necessarily mean being risk-averse. It only means that we need to be more vigilant with what type of risk we should and should not take,” said Al Maraj, speaking at the 23rd Annual World Islamic Banking Conference in Manama.
Al Maraj also highlighted Islamic banks susceptibility to unsteady economic conditions due to their relative small size and scale of operations.
On a positive note, Al Maraj praised financial technology as a major force for good in developing the global Islamic banking culture into the future, and all at a lower cost than before.
Read more at The Star.