Abstract:
The study explores the highly sensitive areaof concentration risk in terms ofcredit portfolio for topcommercial banks operating in Pakistan’s banking industry comparatively in the categories of both Conventional and Islamic banks. The relationship trendsof concentration risk of banks’credit portfolio and GDP, GNI of Pakistan have also been observed in this research. The secondary data has been obtained from the annual financial reports of banks, statistical bulletins issued by the State Bank of Pakistan, and World Bank data from the year 2009 to 2016. The HHI (Her find hall hirschmann Index) has been utilized to execute the concentration risk analysis and it was explored that conventional banks’ credit portfolio haslesser concentration risk than Islamic banks credit portfolio. Moreover the positive relationof this concentration risk has been observed withGDPand GNI through descriptive analysis of secondary data especially inthecase of Islamic banks in Pakistan.
