Ahmed Al Kaabi, Alyazi Al Mazrouei, Salma Al Hamadi, Mariam Al Yousuf and Eunice Taylor
This paper aims to provide an overview of the methods used, and results found, during an in-depth investigation into the status of food safety management systems in eight types of…
Abstract
Purpose
This paper aims to provide an overview of the methods used, and results found, during an in-depth investigation into the status of food safety management systems in eight types of Abu Dhabi businesses. It is the second article in a Worldwide Hospitality and Tourism Themes theme issue presenting a comprehensive government strategy for improving food safety management standards across the hospitality industry.
Design/methodology/approach
The research process gathered quantitative and qualitative data from industry visits, surveys, interviews, document analysis, focus groups and stakeholder workshops.
Findings
Standards varied across the industry, with distinct characteristics and patterns across the eight groups. Systems were most likely to be found to be in place within hotels. However, there were some issues with validation, documentation and particularly certification. In other sectors, there were lower levels of food safety management with some additional specific challenges. The baseline data identified, along with regulatory requirements based on international best practice, provided a detailed road map for outcomes to be achieved in the Emirate of Abu Dhabi.
Originality/value
The article brings together a theoretical and practical discussion of food safety standards within the hospitality industry, with a unique insight into a practical application in the Emirate of Abu Dhabi. It will be of value to practitioners, researchers, policy makers and other stakeholders involved in the food industry.
Details
Keywords
Mohd Yaziz Mohd Isa and Md. Zabid Hj Abdul Rashid
This paper aims to investigate the adequacy of regulatory capital funds through loss provisioning policies because of worsening credit quality associated with distressed financial…
Abstract
Purpose
This paper aims to investigate the adequacy of regulatory capital funds through loss provisioning policies because of worsening credit quality associated with distressed financial conditions. A financial distress occurs when banks have difficulty in honoring financial commitments. This paper is expected to unveil how the provisioning mechanisms can address concerns associated with pro cyclicality of regulatory capital funds requirements, and how the banks behave in distressed financial conditions to share risks. The pro cyclicality of regulatory capital funds is the effect of various components of the financial system that aggravates the economic cycle such as during the expansion of the economy when banks are able to provide more loans and meet regulatory capital requirements with ease, while during the contraction of the economic cycle, can lead to deterioration of asset quality, and the resultant need to make loss provisions and recognize impairment. In turn, the situation puts further pressures on the capital requirements held by banks and their risk-sharing behavior. The paper analyzes a sample of Islamic banks in Malaysia.
Design/methodology/approach
By estimating credit risk-related information through loss provisioning policies, the paper uses an unbalanced panel data on all Islamic banks in the Association of Islamic Banking Institutions Malaysia from 2003 to 2014. The association consists of full-fledged Islamic banks and several foreign-owned entities.
Findings
The paper findings support that Islamic banks during observed period of distressed financial conditions were less discouraged to increase their regulatory capital funds to share risks. Intuitively, they were more encouraged to engage in risk-shifting behavior. Also, the risk-shifting behavior was found to have a significantly high potential in foreign-owned Islamic banks than in domestic Islamic banks.
Research limitations/implications
Although the study is based on a sample of Islamic banks in Malaysia, the findings suggest targeted interventions aimed at discouraging risk shifting or transfer of risks in an interest-free Islamic financing.
Practical implications
The outcome of this paper has practical implications for Islamic banks to build a buffer of capital funds to face downward pressures during heightened financial uncertainties while serving as protection to depositors. Moreover, this study has practical implications for shareholders to avail themselves the benefits of high investment accounts financing. The Islamic banks can continue to play their role in promoting inclusive growth, reducing inequality and accelerating poverty reduction.
Social implications
Although the current study is based on a sample of Islamic banks in Malaysia, the finding suggests that the extent of risk shifting was significantly more incentivized among the foreign-owned rather than the domestic Islamic banks. This information can be used to develop targeted interventions aimed at discouraging risk shifting or transfer of risks in an interest-free Islamic financing.
Originality/value
This paper is the first that investigates on adequacy of regulatory capital funds of Islamic banks through loss provisioning policies.