The global financial crises are the main factors leading to the establishment of financial institutions in the search for mechanisms to address the risks affecting their work, and create a common thinking among the central banks in different countries of the world based on coordination between these regulatory authorities to reduce the risks to the banks, The Basel or Basel Committee for Banking Supervision was established by the Group of Ten Industrial Countries at the end of 1974 under the supervision of the Bank for International Settlements in Basel, Switzerland. The Basel I Committee established in 1988 a framework for measuring credit risk and determining the minimum capital adequacy standard With the development and diversification of products in the banking market and the continuous technological developments, the Basel Committee has improved the capital framework and the issuance of Basel II, which focused on credit risk, operational risk and market risk. As a result of the global financial crisis in 2008 and the lessons learned, the Basel Committee introduced several amendments and improvements to the Basel II decisions, collectively the Basel III decisions, which added a new definition of capital, definition of the global liquidity standard, .
In spite of the contributions of the Basel Committee since 1988 to help strengthen the stability of the global banking system, especially after the worsening of the external debt crisis of developing countries, and the establishment of mechanisms to meet the risks through the adoption of a set of criteria for measuring risks and improve techniques for controlling the work of banks, Islamic banks, which have also been affected by the global financial crises, according to a recent study issued by the Advisory and Advisory Board of Islamic Finance in 2009 and published by the General Council of Islamic banks and financial institutions that the study of a sample of ten banks represented by commercial banks The indirect effects of the global financial crisis have affected Islamic banks more than their impact on conventional banks.
Islamic banks are distinguished from other conventional banks with other types of risks related to their compliance with Shariah principles in all their banking, investment and financing transactions provided to customers (Islamic Shari'ah principles). Failure to comply with these principles may harm the Bank's reputation, loss of market share, The financial losses are due to two reasons, the first is the decline of dealers with financial banks, and the second to save the profits resulting from non-compliance with Shariah controls. This has made Islamic banks unique to a new concept of risk called risk of non-compliance with Shariah rules or legitimate risks