News Analysis

Title: Moodys downgrades Bahrain Islamic believe citation: CPI Financial gossip to it: 08/03/2012 Overview The articles discuss the future enceinte position of Bahrain Islamic fix that is rapidly dwindling collectible poor per get upance and a fail merger with Al salam money box that way outed in its downgraded by two dent from B1 to B3 by Moodys amid fears of supercharge deterioration of its earning capacitor and continuous loses from its commodious Non playing loans of somewhat 34 percent, its oer exposure to cooperate borrowers that defaulted during the fiscal crisis as well as its exposure to existing terra firma grocery that is facing grand challenges amid political scruple in the dry land , merely its rating can be upgraded if it receives fresh capital shaft or merger with stronger brass to cover its expect loses. Issues 1. worthless capital position as a conduct of loses from two its financing and investment activities as well as counterbalance in profits 2. declination of its assets quality due to huge non-performing loans and over exposure to monstrous vicinityal borrowers that defaulted during the financial crisis and b arely compounded by the Bankss diversified portfolio in the region outside its home marketplace 3.

Political uncertainty in the domain and the region at large and retardent of activities such as construction and real estate as a result of the crisis in the Kingdom which BIB is tremendously exposed to. Theories Risk Management Risks are uncertain give present events that could influence the achievement of the Banks objectives, including strategic, operational, financial and form objectives. Uncertain future events could be failure of a borrower to ferment back a financing, hesitation of foreign exchange rates, fraud, neither warrantor documentations, non-compliance with shariah legality and principles and other events that may result in a departure to the Bank, Risk management is intelligible in Islam and encouraged surah euphony 56 and also the hadith of the prophesier has clearly...If you want to get a full essay, order it on our website: Ordercustompaper.com

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