Elucidation of the key factors escalating credit: case Al Salam Bank-Algeria

Abstract

Nowadays Islamic banking system is witnessing a tangible improvement and remarkable expansion that reached beyond the Islamic world borders, Algeria like the rest of the world has followed this current. In light of recent development, the various risks, especially the credit risk remain a threat to their stability. In this study, we aim to shed light on credit risk in IBs through a field study in Al Salam Bank – Algeria to investigate the key factors of the increase of the overdue amount, from the perspective of the bank staff members on the one hand and from the perspective of the defaulting borrowers on the other hand.