مجلة بحوث الإدارة والاقتصاد
Volume 5, Numéro 4, Pages 180-190
2023-12-31

The Role Of Islamic Finance In Reducing Financial Risks

Authors : Abbes Meryem . Hammadi Malika .

Abstract

The study aimed to test the relationship between Islamic finance and financial risks, identify and explain the regulatory framework of Islamic finance, and clarify the financial risks resulting from financing operations. The importance of the study is that it represents a vision that allows the development of Islamic financing services and also diagnoses the characteristics of Islamic financing to combat financial risks. The problem of the study was how Islamic financing works to reduce financial risks. The study adopted the descriptive and analytical methods. It reached that Islamic financing formulas are based on the provisions of Islamic law and There is a strong inverse relationship, where the more Islamic financing is used, the lower the degree of financial risk. The study also made the following recommendations: Islamic banks should work to exchange experiences in risk management at the internal and external levels.,There should be sound and correct supervision of financial transactions through the adoption of a financial Shariah supervisory approach.,It is essential to adopt a diversification approach in Islamic financing formulas and not to be limited to a specific formula

Keywords

financial, ; Islamic finance, ; risk, ; financial risks