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.
Published in | International Journal of Business and Economics Research (Volume 2, Issue 6) |
DOI | 10.11648/j.ijber.20130206.15 |
Page(s) | 158-168 |
Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
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Copyright © The Author(s), 2013. Published by Science Publishing Group |
Global Financial Crisis, Credit Risk, Pakistan, Islamic Banks, Conventional Banks
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APA Style
Azam Ali, Saghir Pervaiz Ghauri. (2013). Global Crisis and Credit Risk Management by Banks: A Comparative Study of Banks in Pakistan. International Journal of Business and Economics Research, 2(6), 158-168. https://doi.org/10.11648/j.ijber.20130206.15
ACS Style
Azam Ali; Saghir Pervaiz Ghauri. Global Crisis and Credit Risk Management by Banks: A Comparative Study of Banks in Pakistan. Int. J. Bus. Econ. Res. 2013, 2(6), 158-168. doi: 10.11648/j.ijber.20130206.15
AMA Style
Azam Ali, Saghir Pervaiz Ghauri. Global Crisis and Credit Risk Management by Banks: A Comparative Study of Banks in Pakistan. Int J Bus Econ Res. 2013;2(6):158-168. doi: 10.11648/j.ijber.20130206.15
@article{10.11648/j.ijber.20130206.15, author = {Azam Ali and Saghir Pervaiz Ghauri}, title = {Global Crisis and Credit Risk Management by Banks: A Comparative Study of Banks in Pakistan}, journal = {International Journal of Business and Economics Research}, volume = {2}, number = {6}, pages = {158-168}, doi = {10.11648/j.ijber.20130206.15}, url = {https://doi.org/10.11648/j.ijber.20130206.15}, eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20130206.15}, abstract = {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.}, year = {2013} }
TY - JOUR T1 - Global Crisis and Credit Risk Management by Banks: A Comparative Study of Banks in Pakistan AU - Azam Ali AU - Saghir Pervaiz Ghauri Y1 - 2013/12/30 PY - 2013 N1 - https://doi.org/10.11648/j.ijber.20130206.15 DO - 10.11648/j.ijber.20130206.15 T2 - International Journal of Business and Economics Research JF - International Journal of Business and Economics Research JO - International Journal of Business and Economics Research SP - 158 EP - 168 PB - Science Publishing Group SN - 2328-756X UR - https://doi.org/10.11648/j.ijber.20130206.15 AB - 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. VL - 2 IS - 6 ER -