Question: Question 1 The figure below is extracted from a journal article titled Risk-return Analysis of Islamic Banks Investment Deposits and Shareholders' Funds, by Saiful Azhar

Question 1 The figure below is extracted from a journal article

Question 1 The figure below is extracted from a journal article titled "Risk-return Analysis of Islamic Banks Investment Deposits and Shareholders' Funds", by Saiful Azhar Rosly & Muhammad Ashadi Mohd. Zaini, 2008. Figure 1: Distribution of Risks among Bank's Shareholder and Depositors Financing Murabaha/BGA ar istisna Musyarakah Enah Mudaraban Deposits Wadiah Camanan Mudanib Custodial Credit risk Market risk Liquidity risk Forex Shariah risk Operational risk Bank's Share Capital Based on the above figure, you are required to answer the following questions. a. Explain THREE (3) risk exposure faced by shareholder and depositors of Islamic bank. (6 Marks) b. Do you agree that the above risk exposure is also faced by conventional bank? Discuss by giving ONE (1) reason. (3 Marks) C. DISTINGUISH between Mudarabah and Musyarakah concepts that are prominently used in Islamic Finance. (4 Marks) (Total: 13 Marks) Question 1 The figure below is extracted from a journal article titled "Risk-return Analysis of Islamic Banks Investment Deposits and Shareholders' Funds", by Saiful Azhar Rosly & Muhammad Ashadi Mohd. Zaini, 2008. Figure 1: Distribution of Risks among Bank's Shareholder and Depositors Financing Murabaha/BGA ar istisna Musyarakah Enah Mudaraban Deposits Wadiah Camanan Mudanib Custodial Credit risk Market risk Liquidity risk Forex Shariah risk Operational risk Bank's Share Capital Based on the above figure, you are required to answer the following questions. a. Explain THREE (3) risk exposure faced by shareholder and depositors of Islamic bank. (6 Marks) b. Do you agree that the above risk exposure is also faced by conventional bank? Discuss by giving ONE (1) reason. (3 Marks) C. DISTINGUISH between Mudarabah and Musyarakah concepts that are prominently used in Islamic Finance. (4 Marks) (Total: 13 Marks)

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