This paper tries to observe the cost structure in two prominent Islamic banks in Indonesia. The Bank's cost structures are viewed in many ways such as operational and non-operational costs, and fund costs and non-fund costs.The study employed descriptive analysis to explain the data...

Islamic banks operate without involving interest, and therefore are believed to be less risky during the financial crisis than are conventional banks. This advantage may not be significant if government either partially or fully guarantees any bank deposit at certain level. In other words,...

Islamic banks operate without involving interest, and therefore are believed to be less risky during financial crises than conventional banks. This advantage may not be significant if the government either partially or fully guarantees bank deposits. In the presence of deposit insurance the...

Market discipline has been well recognized as effective means for preventing excessive business risk taking. Nevertheless, as the nature of investment in Islamic Finance may not meet the required characteristics, the ability of market discipline to work in its particular instrument market still...