RISK MANAGEMENT PRACTICES OF ISLAMIC BANKS OF PAKISTAN
Loading...
Date
2020
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
UMT, Lahore
Abstract
In the current fast-paced business environment, banks face huge losses. Contact with
numerous risks requires effective risk supervision and management which includes
identifying, assessing, and prioritizing risk following resource coordination and financial
application to minimize monitor and control the likelihood of unfortunate events.
Therefore, the aim of current study is to examine the effective risk management practices
(RMPs) used by Islamic banking sector in dealing with different types of risk in Pakistan.
A survey questionnaire is used to collect the data from the risk management departments
of Islamic banking sector. The data is collected from 153 respondents. Using the multiple
regression analysis, the study finds that risk assessment and analysis, risk identification
and risk monitoring are the statistically significant risk aspects that play a positive role in
the risk management practices of the Islamic banking sector. Moreover, study also find
that full-fledged Islamic banks have effective risk management techniques comparative to
conventional banks with Islamic windows/branches. This research is worthwhile for the
entire banking sector, depositors and those who desire to invest in other place. Moreover
the Islamic banks get the advantage from the outcome to formulate the strategy.