Can any one suggests a measure of tangible asset ratio for islamic banks? is this ratio =1 if we consider the required asset tangibility principle?
Dear Dr. Toumi Kaouther,
Firstly, how is your classification of the Islamic assets in your study, presumably by contract types - which are based on Islamic principles such as Bai' Bithaman Ajil, Murabahah. (others are rate sensitivity, economic sectors, purpose, and types of customers). Then, perhaps that would help to determine the required tangibility levels. Please have a look at the account of two Islamic banks here (attached).
Best wishes
Assist Prof Dr Mohd Yaziz Bin Mohd Isa
thanks Dr Mohd Yaziz Isa for your response! But from a balance sheet of an Islamic bank (without regarding the other details in the financial statement), Which financial ratio could we calculate to measure tangibility (approximatively)
from these two balance sheets, may be a proxy for tangibility ratio of IB : (Total assets - Intangible assets) /total assets ? a simple measure!
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