Risk governance and bank risk-taking behavior: Comparative Analysis of Islamic and Conventional Banking in Pakistan

Abstract

The vital objectives of the current studies is to discover experimentally the dimension through which banking industry take into account various kinds of managing risk methods and practices in dealing with diverse kind of risk and to make assessment of management risk operations of Islamic and conventional banking system in Pakistan. This research thesis discussed the methods used in analyzing and makes comparative study of managing risks operations Islamic and Islamic and conventional banking system in Pakistan. This research thesis is based on quantitative research methods. It takes primary data for analysis. The data is gathered from senior management of banks in Islamic and conventional banking system in Pakistan. The finding of the discussion shows that identification of risks, estimation of risk; understanding risks and managing risks are the very effective variables in contributing to managing risks operation of both types of banks in Pakistan. On the other hand understanding risks and managing risk are the very important variables in managing risk operation of both banks. Furthermore, the discussion shows that there is distinction among the both banks with regard to the identifying risks and managing risks operations. The current study will be valuable for the manager of risks, professionals, conservative banks, Islamic banks and for those make policies, in addition to for the point of view of academics. The outcomes of this research will be valuable for improving the managing risks operations of banking industry working in Pakistan. It provides help to researchers and banks staff to have an image about the growth of managing risks operations of banks. While they will use the outcomes of this thesis to upgrade their managing risk operations, they will be capable to construct trust of the shareholders and participants of the market, which in return will increase their goodwill and revenue. DRSML QAU viii This research thesis has also significance for the Islamic banking system by highlighting the drawbacks in the managing risks operations of banks. It will also be valuable to make better their current operations and rules linked to measure the risks, reducing risks, to monitor the risks and to show the exercise. Key words: Risks management practices, Risks identification, Risks assessment and analysis, Credit rating analysis, Banking sector