The paper investigates the determinants of credit risk of Islamic and conventional banks in Bangladesh. In so doing, it collects data from 30 private commercial banks comprising of seven Islamic banks and 23 conventional banks for the period 2001–2018. Collected data are analyzed using GMM estimation technique. This method is perceived to be robust because it reduces the endogeneity problem that exists in the panel data set. Analysis of data shows that among the macro-economic variables, GDP growth decreases credit risk, whereas real interest rate and inflation increase credit risk. Bank-specific variables prove that both clusters of banks suffer from adverse selection and moral hazard problems. Results also indicate that competition has a risk-enhancing effect on banks, which supports the competition-fragility nexus. Further analysis shows that board size and board independence affect the credit risk of both clusters of banks. Findings of this study suggest some policy implications from macro, bank and governance perspectives. Specifically, banks should adopt ‘speed limit’ policy to reduce the poor quality loan. Also, competition in the banking industry should be regulated. Finally, central bank should maintain uniform capital adequacy ratio for both clusters of banks. Although this study is limited to private commercial banks in Bangladesh, the results can be generalized for other emerging economies.

中文翻译：

---

信用风险的决定因素：孟加拉国伊斯兰银行和传统银行的比较分析

本文调查了孟加拉国伊斯兰银行和传统银行信用风险的决定因素。通过这样做，它收集了 2001-2018 年期间 30 家私人商业银行的数据，其中包括 7 家伊斯兰银行和 23 家传统银行。使用 GMM 估计技术分析收集的数据。这种方法被认为是稳健的，因为它减少了面板数据集中存在的内生性问题。数据分析表明，在宏观经济变量中，GDP增长降低了信用风险，而实际利率和通货膨胀增加了信用风险。银行特定变量证明，两个银行集群都存在逆向选择和道德风险问题。结果还表明，竞争对银行具有增强风险的作用，这支持了竞争-脆弱性关系。进一步分析表明，董事会规模和董事会独立性影响两个银行集群的信用风险。本研究的结果从宏观、银行和治理的角度提出了一些政策含义。具体而言，银行应采取“限速”政策，减少劣质贷款。此外，银行业的竞争也应受到监管。最后，央行应保持两个银行集群的资本充足率一致。虽然这项研究仅限于孟加拉国的私人商业银行，但其结果可以推广到其他新兴经济体。银行应采取“限速”政策，减少劣质贷款。此外，银行业的竞争也应受到监管。最后，央行应保持两个银行集群的资本充足率一致。虽然这项研究仅限于孟加拉国的私人商业银行，但其结果可以推广到其他新兴经济体。银行应采取“限速”政策，减少劣质贷款。此外，银行业的竞争也应受到监管。最后，央行应保持两个银行集群的资本充足率一致。虽然这项研究仅限于孟加拉国的私人商业银行，但其结果可以推广到其他新兴经济体。