THE ROLE OF ISLAMIC BANKING IN DIVERSIFYING BANK RISKS

This article analyzes the role of Islamic banking in diversifying bank risks. Islamic banking, with its fundamental principles and specific financial  operations,  provides opportunities to reduce risks compared to traditional banking systems. The article examines the risk management strategies of Islamic banks and diversification processes through Sharia-compliant financial instruments. The advantages of Islamic banking in risk diversification, such as interest-free operations and financing based on real assets, play an important role in ensuring stability for banks. In addition, the article discusses the contribution of Islamic banks to economic stability and their social responsibilities in society. As a result, it is shown that Islamic banking offers effective and innovative solutions for diversifying bank risks.