Risk management disclosure practices of Islamic banks in the MENA region: An empirical analysis

Risk management disclosure practices of Islamic banks in the MENA region havebeen chosen as the focus of this study as the region is currently home to more than 50 percent of the worldwide share of Islamic banks [17]. Very little research has been conducted on risk management disclosure of Islamic banksin thisregion. This study examines the compliance level with the IFSB risk disclosure checklist by Islamic Banks using content analysis as a research design andthe OLS regressionas method of analysis. The research finds above average compliance with risk disclosure categories exceptdisplaced commercial risk (DCR), whichshowsa poor result and that size and having foreign subsidiaries can actually assist banks to report on risk factors. It is recommended that DCR should receive proper attention from regulators and supervisors as the importance of providing information to investment account holdersis crucial to the success of the Islamic banking model of profit and loss sharing.