Islamic banks outperform conventional banks in managing credit risk in Saudi Arabia.
The article examines how Islamic and conventional banks in Saudi Arabia manage credit risk. It compares their practices and performance over a ten-year period from 2009 to 2018. The study uses indicators like loan provision ratios and non-performing loans to assess risk management. Results show that conventional banks handle total loans better, while both types of banks' financial performance is affected by risk management strategies.