Abstract

Importance of the study The success of credit risk management means increasing the efficiency of the Islamic bank in the management of investors’ money and therefore increase the capacity of the Islamic bank in achieving the development side of the community and increase its competitiveness and achieve the principle of continuity is risk management is an important tool in making investment decisions good. The challenge for financial institutions and international banking and the emergence of importance of Islamic thought in the arena of the global financial and especially after the U.S. subprime mortgage crisis that hit the U.S. market (2007), which left significant adverse effects including a point of weakness in the financial risk management pursued by the capitalist system and draws a lot of traditional banks to provide financing tools Islamic therefore highlights opportunity for the Islamic regime to put Islamic alternative in hedging and risk management.

The controversy arises about the problem of credit risk on Islamic banking compared with commercial banks and some studies have indicated increased credit risk impact on Islamic banks at a higher level of commercial banks and that the principles of Islamic Sharia emphasizes in its financial transactions on the subscription gains and losses and not dealing at usurious interest rates assumption of the study Increased credit risks negative impact on Islamic banks more than the commercial banks formulas different investment, variation after credit risk banking in both the commercial banks and Islamic formulas different investment, it is the impact of credit risk formulas different investment for each of the Islamic banks and commercial.