It is unlikely that operational risk leads to withdrawal of funds by the fund providers and ultimate closure of accounts costing Islamic banks substantial losses in tangible and intangible terms.

Question

Quizplus · Accepted Answer

Operational risk, which includes failures in internal processes, people, and systems, or from external events, can indeed lead to the withdrawal of funds by fund providers and the ultimate closure of accounts, causing substantial losses in both tangible and intangible terms for Islamic banks, just as it can for conventional banks.

It Is Unlikely That Operational Risk Leads to Withdrawal of Funds