Abstract:
The study will investigate the credit risk management and the variables that effect it in
conventional and Islamic banks of Karachi. The other variables are some ofthe ratios ofthe
banks and economic indicators which are essential for managing the credit risk. Time series
will be analyzed in the study starting from the time of 1999 till 2019 of 8 different banks
comprise of 4 conventional banks and 4 Islamic banks. The Panel least square will be used
and EVIEWS will be analyzed to interpret the data. The finding will confirm whether the null
hypothesis or alternate hypothesis should be selected. Furthermore, the results will identify
which variables are more significant to explain credit risk in the banking sector ofPakistan.
