Assalamu Alaykom Wa Rahmatu Allah
I think many factors have to be taken into consideration to calculate this
ratio;
1-Methods of finance the Bank in question adopts, because Murabahah &
Diminishing partnership are less risky than Musharakah and Mudharabah as you
know.
2-Level of luxury in paying salaries, various expenses & cut-expenses' policy
the Bank implements.
3-Level of competition with other financial institutes in the market. The more
compition they have, the less the profit will be.
4- Measures and restrictions to secure their transactions/ partnership with
clients.
Finally, bad debt is not to be a part of the calculation, because simply,
Islamic Banks do not advance money as an interest-free loans to their clients,
but they involve the money in real business transactions and partnerships.
Because of the aforementioned reasons- and much more- I think it is hard to
have an average for this ratio. Furthermore, I doubt the 45% you mentioned,
because if the total expense is 45%, this mean that the net profit is 55% which
is hard to achieve to the best of my knowledge.
Dr.Main Al-Qudah
Assembly of Muslim Jurists in America
www.amjaonline.com
From: [email protected]
To: [email protected]
Subject: {Kantakji Group}. Add '6913' Non-Interest Expense ratio in Islamic
Banks
Date: Tue, 30 Mar 2010 13:30:24 -0400
Dear all,
I am writing to share and to receive information on the right calculation that
I should be implementing in order to get the right calculation for the
non-interest expense ratio. My calculation of the non-interest expense consist
of salary, wages, office, and other related expense, including the loan loss
provision for anticipated bad debt. Once we have the total non-interest
expense, we divide the number over the total assets. As per my calculations,
there are many Islamic banks with which the non-interest expense ratio consists
of approximately 45% of total assets. Is this a normal percentage for the
Islamic Banks?
Appreciate your kind thoughts and assistance with this matter.
Kind regards,
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سياسة النشر في المجموعة:
- ترك ما عارض أهل السنة والجماعة.
- الاكتفاء بأمور ذات علاقة بالاقتصاد الإسلامي وعلومه ولو بالشيء البسيط. ويستثنى
من هذا مايتعلق بالشأن
العام على مستوى الأمة كحدث غزة مثلا.
- عدم ذكر ما يتعلق بشخص طبيعي أو اعتباري بعينه. باستثناء الأمر العام الذي يهم
عامة المسلمين.
- تمرير بعض الأشياء الخفيفة المسلية ضمن قواعد الأدب وخاصة منها التي تأتي من
أعضاء لا يشاركون عادة، والقصد من ذلك تشجيعهم على التفاعل الإيجابي.
- ترك المديح الشخصي.
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سياسة النشر في المجموعة:
- ترك ما عارض أهل السنة والجماعة.
- الاكتفاء بأمور ذات علاقة بالاقتصاد الإسلامي وعلومه ولو بالشيء البسيط. ويستثنى
من هذا مايتعلق بالشأن
العام على مستوى الأمة كحدث غزة مثلا.
- عدم ذكر ما يتعلق بشخص طبيعي أو اعتباري بعينه. باستثناء الأمر العام الذي يهم
عامة المسلمين.
- تمرير بعض الأشياء الخفيفة المسلية ضمن قواعد الأدب وخاصة منها التي تأتي من
أعضاء لا يشاركون عادة، والقصد من ذلك تشجيعهم على التفاعل الإيجابي.
- ترك المديح الشخصي.
