IFSB-1 Provides for the Following Guiding Principles for the Management

question 35

Multiple Choice

IFSB-1 provides for the following guiding principles for the management of credit risk for Islamic banks and financial institutions EXCEPT:

• A) IIFS shall carry out a due diligence review in respect of counterparties prior to deciding on the choice of an appropriate Islamic financing instrument.
• B) IIFS shall have in place a strategy for financing, using various instruments irrespective of their compliance with Sharī`ah.
• C) IIFS shall have in place appropriate methodologies for measuring and reporting the credit risk exposures arising under each Islamic financing instrument.
• D) IIFS shall have in place Sharī`ah-compliant credit risk mitigating techniques appropriate for each Islamic financing instrument

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Definitions:

Strategy Of The North

A term likely referencing the military, political, or economic strategies employed by the Northern states or factions in a historical context, such as during the American Civil War.

Burn And Destroy

A military strategy aimed at causing widespread destruction, often used to demoralize an enemy or deprive them of resources, seen in various conflicts throughout history.

Southern Property

Often refers to lands and holdings in the Southern United States, historically associated with agricultural practices and plantation economies.

Winfield Scott

A United States Army general, and unsuccessful presidential candidate of the Whig Party in 1852, known for his roles in the Mexican-American War and the Civil War.