International Journal of Business and Economics Research

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Global Crisis and Credit Risk Management by Banks: A Comparative Study of Banks in Pakistan

Received: 08 December 2013    Accepted:     Published: 30 December 2013
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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.

DOI 10.11648/j.ijber.20130206.15
Published in International Journal of Business and Economics Research (Volume 2, Issue 6, December 2013)
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.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Global Financial Crisis, Credit Risk, Pakistan, Islamic Banks, Conventional Banks

References
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Author Information
  • Statistics & DWH Department, State bank of Pakistan, Karachi, Pakistan

  • Research Department, State bank of Pakistan, Karachi, Pakistan

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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

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    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

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    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

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  • @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://download.sciencepg.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}
    }
    

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    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.
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