Volume 2, Issue 6, December 2013, Page: 158-168
Global Crisis and Credit Risk Management by Banks: A Comparative Study of Banks in Pakistan
Azam Ali, Statistics & DWH Department, State bank of Pakistan, Karachi, Pakistan
Saghir Pervaiz Ghauri, Research Department, State bank of Pakistan, Karachi, Pakistan
Received: Dec. 8, 2013;       Published: Dec. 30, 2013
DOI: 10.11648/j.ijber.20130206.15      View  3350      Downloads  311
The world trade environment has worsened significantly after August 2007. The rapid and dynamic changes in the global financial landscape pose various risks to banking institutions. Operating side by side with conventional banks, Islamic banks are equally vulnerable to risks. This paper examines the impact of global financial crisis on the credit risk management of banks operating in Pakistan during the period, 2007-2009. A comparison of the factors, affecting credit risk faced by these banks, is highlighted. Study finds that, whilst the Islamic banking industry has not been left unaffected by the global crisis, Islamic banks in Pakistan are in a relatively strong position. This is because of the industry's high levels of transparency and adherence to a strict code of business conduct and Management efficiency, which means that Islamic banks have the potential to emerge from the crisis in a stronger position than their conventional counterparts.
Global Financial Crisis, Credit Risk, Pakistan, Islamic Banks, Conventional Banks
To cite this article
Azam Ali, Saghir Pervaiz Ghauri, Global Crisis and Credit Risk Management by Banks: A Comparative Study of Banks in Pakistan, International Journal of Business and Economics Research. Vol. 2, No. 6, 2013, pp. 158-168. doi: 10.11648/j.ijber.20130206.15
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