Credit risk management of conventional banks and Islamic banks in Bangladesh

Abstract

This paper examines credit risk management (CRM) process of both conventional banks (CBs) and Islamic banks (IBs) in Bangladesh. A set of structured questionnaires has been used in the investigation process. The study incorporates perceived opinions of 96 credit officers working for 17 CBs, and 5 IBs in Bangladesh. This study has found that the risk officers of private commercial banks in Bangladesh are competent in overall credit risk management process. Further, it has also found a significant difference between the credit officers working for CBs, and IBs on understanding and managing credit risk, and credit risk identification, however, no significant difference has been observed in credit risk assessment, credit risk monitoring and controlling, and CRM practices.