The Ability of Islamic Banks in Algeria to Adopt Basel III Standards: A Case Study of Al Salam Bank

Abstract

This study aims to address the issue of risk management in Islamic banks in accordance with the supervisory standards issued by the Basel Committee, together with the amendments and guidelines introduced by the Islamic Financial Services Board (IFSB). It also seeks to explain the method of calculating the Capital Adequacy Ratio (CAR), which enables Islamic banks to cover the risks arising from their business activities.
The study is structured around three main sections. The first section explains risk management according to the Basel Committee standards and the approaches it established for managing banking risks. The second section discusses the guidelines issued by the Islamic Financial Services Board to enable Islamic banks to comply with international standards in risk management. The third section presents the experience of Al Salam Bank in managing risks and evaluates its ability to comply with Basel standards in this field.