Thomson Reuters has launched Kondor+ Suite - a risk management system which has been specifically tailored for Islamic banking.

The Kondor+ Suite for Islamic Banking is a real time trade and risk management solution, designed to provide full front-to-back and cross-asset coverage for Islamic banks as well as Islamic windows in conventional banks.

It said the Islamic finance industry has grown to approximately US$1 trillion, and while Islamic banks avoided the complex instruments that were central of the credit crisis, they have still been adversely affected by the downturn.

Andrew White, global head of risk management at Thomson Reuters, said non-performing loans and investment impairments in the region have mounted in the last year, resulting in a call from the market for systems that foster transparency. He added: "The Islamic finance industry continues to grow in both size and diversity of financial instruments. Kondor+ Suite for Islamic Banking is a modern software solution that can be customised to a client's needs to meet the practices and regulations that vary by region."

Thomson Reuters said the system is designed in accordance with Shari'ah rules under which financing and investment techniques are based on profits from trade rather than the paying and receiving of interest. Instrument coverage in Kondor+ Suite for Islamic Banking, includes commodity and reverse Murabaha; Wakala; deposit exchange; Islamic spot and forwards; point based borrowing and lending; Islamic currency options; profit rate swap; Sukuk.

"From the trading risk perspective, Islamic finance operates in the same macro, tax, regulatory and legal environment as conventional financial services and has the same vulnerabilities to liquidity and confidence crises. As this community expands, niche or add-on systems no longer provide the kind of breadth and depth of functionality needed by financial institutions. Kondor+ Suite for Islamic Banking meets this market requirement," added White.