An analysis of the literature on Islamic bank risk-taking

This article reviews empirical literature on Islamic banks risk-taking behaviour and point out directions for future research. Extant studies on Islamic banking risk-taking have identified risk associated with the Islamic banking product. The paper discusses different scholar's findings and highlight areas of concerns. Recent studies focus on risk-taking behaviour with emphasis on area of governance, ownership structures and performance. The paper discusses issues that are important to Islamic banking risk-taking behaviour and discover areas for future research.