INDEX

LIST OF CONTENTS
DEDICATION I
RESEARCHER’S DECLARATION II
CERTIFICATE OF GUIDE III
ACKNOWLEDGEMENT IV
LIST OF CONTENTS VI-XII
LIST OF TABLES XIII-XIV
LIST OF FIGURES XV
LIST OF ABBRIVIATIONS XVI-XVII
ABSTRACT XVIII
TABLE OF CONTENTS
VI
CHAPTER Page.
Title
NO. No.
CHAPTER INTRODUCTION
1-13
ONE
1.1 Introduction 2

1.2 Statement of the Problem 4

1.3 Significance of the Research 5

1.4 Objectives of the Research 5

1.5 Hypotheses of the Research 6

1.6 Scope of the Research 6

1.7 Research Methodology 7

1.7.1 Data Source of Research 7

1.7.1.1 Primary Data 8

1.7.1.2 Secondary Data 8

1.7.2 Sampling of the Study 8

1.8 Research Instrument 9

1.9 Structure of Research 10

References 13

Ph.D. Thesis, N.M.U., Jalgaon. VI

 INDEX

CHAPTER
REVIEW OF LITERATURE 14-37
TWO
2.1 Introduction 15
Review Of Literature Of Risk And CREDIT Risk 15
2.2
Management
2.2.1 Review Of Literature : Indian Perspective 15
2.2.3 Review Of Literature : Yemen Perspective 21
2.2.4 Review Of Literature: International Perspective 26
Conclusion 34
References 35
CHAPTER
BANKING SECTOR – AN OVERVIEW 38-109
THREE
3.1 SECTION- I: PRIVATE SECTOR BANKS IN YEMEN
3.1.1 Introduction: 40
3.1.2 The Definition of Banks 41
3.1.3 The Strategic Location of Yemen 42
Stages Banking Scenario & History banking in 43
3.1.4
Yemen
Frist Stage: The Banking Scenario 44
3.1.4.1
Before Unification 1962-1990.
Second Stage Banking Scenario in 45
3.1.4.2 Yemen After Unification (1990-present
time)
3.1.5 Brief Overview of Classification of Yemen Banks 47
3.1.6 Conventional or traditional Commercial Banks 49
3.1.6.1 Conventional Commercial Banks 49
Nature of the Conventional 50
3.1.6.2
Commercial Banks
51
3.1.6.3 Function Performed By Banks

3.1.7 Islamic Banks 54

Ph.D. Thesis, N.M.U., Jalgaon.

VII
 INDEX

3.1.7.1 Background of Islamic Banks 55

3.1.7.2 Definition of Islamic Banks 56
3.1.7.3 Nature of the Islamic Banks 57
3.1.7.4 Objectives of the Islamic Banking 58
Differences Between Islamic Banks 59
3.1.7.5
And Conventional Banks
3.1.8 Yemeni Banking System 61
Banking and Financial System in 61
3.1.8.1
Yemen
Development of Banking Structure 62
3.1.8.2
System in Yemen
3.1.9 Yemen Banks Profile 68
3.1.9.1 International Bank of Yemen (IBY) 68
3.1.9.2 Yemen Commercial Bank (YCB) 71

3.1.9.3 Yemen Kuwait Bank for Trade and 72

Investment (YKB)
3.2 SECTION – II: PRIVATE SECTOR BANKS IN INDIA
3.2.1 Introduction 75
3.2.2 History of Indian Banking System 76
3.2.3 Types of Indian Banks 78

3.2.4 Structure Indian Banking System of 80

Commercial Banks
3.2.5 Place of Private Sector Banks in India 84
3.2.6 Major Private Banks In India 85
3.2.6.1 Old Private Sector Banks in India 86
3.2.6.2 New Private Sector Banks in India 90
3.2.7 Indian Banks Profile 94
Industrial Credit and Investment 93
3.2.7.1
Corporation of India(ICICI)

3.2.7.2 The Housing Development Finance 97

Corporation Limited (HDFC)
3.2.7.3 AXIS (UTI) Bank 100
3.3 Summary 102

Ph.D. Thesis, N.M.U., Jalgaon.

VIII
 INDEX

References 103

CHAPTER CONCEPTUAL ANALYSIS OF RISK AND RISK

110-151
FOUR MANAGEMENT

4.1
SECTION I: RISK
4.1.1 Introduction 111
4.1.2 Background and Historical Overview of Risk 112
4.1.3 Concept of Risk 113
4.1.4 Classifications of Risks 115
In Terms of the Ability of 115
4.1.4.1
Management to Control Risks
In Terms of the Ability of 116
4.1.4.2
Management to Expect Loses
Risk Faced in the Banking Sector of Yemen 117
4.1.5
and India
4.1.5.1 Credit Risk 119
4.1.5.2 Market Risk 120
4.1.5.3 Liquidity Risk 121
4.1.5.4 Operational Risk 122
4.1.5.5 Business Risk 123
4.1.5.6 Other Risks 123
4.1.6 Sources and Causes of Risk 124
4.2 SECTION II : RISK MANAGEMENT
4.2.1 Introduction 125
Background and Evolution of Risk 126
4.2.2
Management
4.2.3 Concept of Risk Management 128
4.2.4 Risk Management Objectives 129
4.2.5 Role of The Risk Management Functions 131
4.2.6 Risk Management Process 132
4.2.7 Risk Management Policy 135

Ph.D. Thesis, N.M.U., Jalgaon. IX

 INDEX

Risk Management Strategy 136

4.2.8

Risk Management System In Yemen and 138

4.2.9
Indian Banks
Organizational Structure of Risk 139
4.2.10 Management Department in Yemen and
Indian Banks
4.2.11 The Bank's Risk Management Challenges 142
4.2.12 The Bank's Risk Management Visions 143
4.3 Summary 144
References 146
CHAPTER CREDIT RISK MANAGEMENT IN PRIVATE SECTOR
152-204
FIVE BANKS OF YEMEN AND INDIA.
5.1 Introduction 153
5.2 The Concept of Credit and Credit Risk in Banks 154
5.3 Understanding of Credit Risk 156
5.4 Type of Credit Risk 157
5.5 Methods of Measuring of Credit Risk 159
5.6 Credit risk Management in Yemen and India 163
5.7 Principles of the Management Of Credit Risk 165
5.8 Goal of Credit Risk Management 172
5.9 Need of Credit Risk Management In Banks 174
5.10 Factors Affecting Credit Risks 175
5.9.1 External factors 176
5.9.2 Internal factors 178
Building Blocks of Credit Risk Management 178
5.11
Framework
5.12 Basel Accords and Credit Risk Management 184

5.12.1 Basel I. 184

5.12.1.1 Features of Basel I 185
5.12.1.2 Basel I Criticisms. 186

Ph.D. Thesis, N.M.U., Jalgaon. X

 INDEX

5.12.2 Basel II. 187

5.12.2.1 Structure of Basel II Accord 188
Alternative Approaches for Credit 191
5.12.2.2
Risk in Basel II
5.12.2.3 Basel II Criticisms. 192
5.11.3 Basel III. 192
5.11.4 Credit Risk Management in Banking of Yemen 193
and India According to Basel Committee.
References 198
CHAPTER
RESEARCH METHODOLOGY 205-214
SIX
6.1 Introduction 206
6.2 Research Strategy 206
6.3 Population Sampling and limitations of study 207
6.4 Data Collection Methods 208
6.4.1 Primary Data 208
6.4.2 Secondary Data 210
6.5 Research Instruments 210
6.6 The Reliability of the Instrument 211
6.7 The Validity of the Instrument 212
6.8 Techniques of Data Analysis 212
6.9 Summary 213
References 214
CHAPTER
DATA ANALYSIS AND INTERPRETATION 215-254
SEVEN

7.0 Introduction 216

7.1 Statistical Methods Used 216

7.2 Analysis Of Collected Data 217

Part One: Demographic Characteristics or 218

7.2.1
Profile of Respondents
7.2.1.1 Age Level. 218
7.2.1.2 Education level 219

Ph.D. Thesis, N.M.U., Jalgaon. XI

 INDEX

7.2.1.3 Gender 221

7.2.1.4 Specialists 222
7.2.1.5 Occupation and Employment 223
Experience in Risk and Credit Risk 225
7.2.1.6
Management Field.
Part Two: Data Analysing and Testing 226
7.2.2
Hypothesis

7.2.2.1 Testing of First Hypothesis. 227

7.2.2.2 Testing of Second Hypothesis 235

7.2.2.3 Testing of Third Hypothesis 243

7.2.2.4 Testing of Forth Hypothesis 248

Summary 253
CHAPTER
CONCLUSION AND RECOMMENDATIONS 255-269
EIGHT
8.1 Introduction. 256
8.2 Summary of Study . 256
8.3 Findings of the Study. 259
8.4 Recommendations. 264
Recommendations Need Attention of Yemen 264
8.4.1
Banks.
267
8.4.2 Recommendations Need Attention of Indian
Banks.

8.5 Significance of the Research 268

8.6 Scope for Further Research 269

BIBLIOGRAPHY 270-287
APPENDICES 288-323

Ph.D. Thesis, N.M.U., Jalgaon.

XII