Experimental Design of Islamic Banking Investment Policies with Risk: A Sensitivity Analysis Study

Abdul Sattar Ahmad Al-Alusi; Mohammed Abdel Gadir Mohammed

Article Details

Experimental Design of Islamic Banking Investment Policies with Risk: A Sensitivity Analysis Study

Authors:

Abdul Sattar Ahmad Al-Alusi | Mohammed Abdel Gadir Mohammed

Publisher:

University of Science and Technology, Yemen

Journal:

Journal of Science and Technology Vol.10 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2005

Document Language:

English

Document ID (Org No.):

2001538418

pISSN:

2410-5163

Abstract:

 This paper is concerned with the use of a computer-based mathematical modeling approach in Islamic Banking Investment Policies with Risk. The computer based model has shown the greatest potential of its use as a planning tool in this field. The allocation process of funds in an investment administration of an Islamic bank has been modeled. The bank distributes a total available funds for investment among i different main sectors, j different sub-sectors and by k Islamic forms (or classes) of investment. The bankmanagement seeks to maximize the total net returns from the investment operations. In this paper whichis considered as Part II to the first one, the obtained optimal solution analyzed through different policies.The aim of this paper is to investigate the different investment policies with risk constraint in depth. TheLP model is used as a tool for designing and testing investment policies. A sensitivity analysis study hasbeen conducted through a number of experiments which have been designed, tested and analyzed as well.Overall conclusions of the applicability of mathematical modeling in addressing policy design and testingin Islamic banking investment are made. The available computer software TORA optimization systemhas been implemented to design and test the investment policies using the LP model.

Article Details

Experimental Design of Islamic Banking Investment Policies with Risk: A Sensitivity Analysis Study

Authors: Abdul Sattar Ahmad Al-Alusi | Mohammed Abdel Gadir Mohammed

Publisher: University of Science and Technology, Yemen

Journal: Journal of Science and Technology Vol.10 Issue 2, pp.0-0

Document Type: Article

Publication Date: 1/2005

Document Language: English

Document ID (Org No.): 2001538418

pISSN: 2410-5163

Issues

Authors:

Abdul Sattar Ahmad Al-Alusi | Mohammed Abdel Gadir Mohammed

Publisher:

University of Science and Technology, Yemen

Journal:

Journal of Science and Technology Vol.10 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2005

Document Language:

English

Document ID (Org No.):

2001538418

pISSN:

2410-5163