Credit Risk Minimizing: Analysis study of Islamic and conventional banks in Yemen

Main Article Content

Dr. Abbokar Siddiq
Ebrahim Al Gamal
Osamah AL-Maamari

Abstract

Purpose: The study aims to compare the credit risk minimization between Islamic and conventional banks in Yemen.


 


Approach/Methodology/Design: This paper is limited to a homogeneous sample that includes the Islamic and conventional banks' coverage as they represent the most significant part of the Yemeni banking sector. Using a descriptive-analytical method, data has been collected by a questionnaire sent by post to each Islamic and conventional bank separately located in Yemen's capital city.


 


Findings: The study concludes that credit risk is the most critical risk facing banks, and there is a significant difference in credit risk minimizing between Islamic.


 


Originality/value: The result showed that the banks' most critical risks are credit risks, and there is a significant difference in credit risk minimisation between Islamic and conventional banks. Also, conventional banks possessed a credit risk minimizing system better than Islamic banks. Several recommendations identified where the Yemeni banks, whether Islamic or conventional, should use advanced methods to measure and analyze credit risks.

Article Details

How to Cite
Siddiq, D. A. ., Al Gamal, E., & AL-Maamari , O. . (2023). Credit Risk Minimizing: Analysis study of Islamic and conventional banks in Yemen. Journal of Advanced Research in Economics and Administrative Sciences, 3(4), 1-8. https://doi.org/10.47631/jareas.v3i4.553
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