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A Comparison between Islamic Banking and Conventional Banking Sector in Pakistan

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  • Abdul Hafeez Quresh
  • Kashif Ur Rehman

Abstract

The Islamic banking system is attaining enormous development. Several modern international conventional banks were also enchanting significant concern and starting Islamic banking branches in their organizations, which work in compliance with the specific Islamic Shariah principles in a number of states of Pakistan. The Islamic banking structure is bizarrely facing gigantic contest by the Islamic banking sector all over the world as well as from the well-known International commercial banks that hold out services and products of IB. It is an attempt for exploration and investigation of the extensive and essential factors, which persuade consumers to choose the Islamic banking or conventional banking and the function of demographic features, which track consumers to the assortment of IB or CB in Pakistan. Sample of 341 respondents has been used in this study mainly focused on non-probability convenience test tool. Pre-institute 5 point likert survey instrument ranging from 5 to 1 was applied to gather data. The conclusion reveals that there are countless factors other than religious perception like employee and customer interactions, convenience, reputation, financial benefits & services, and technology, which are fundamental for the consumers for the assortment of Islamic or conventional banking. The demographic characteristics of the respondents also have a significant impact. The authors expect that the crux of this study will explore new ways for the Islamic banking system to emphasis on specific emerging factors to enhance the efficiency and performance of the Islamic banking system in Pakistan. There will be enormous advantage for executives of IBs & CBs in developing marketing approach.

Suggested Citation

  • Abdul Hafeez Quresh & Kashif Ur Rehman, 2012. "A Comparison between Islamic Banking and Conventional Banking Sector in Pakistan," Information Management and Business Review, AMH International, vol. 4(4), pages 195-204.
    • Handle: RePEc:rnd:arimbr:v:4:y:2012:i:4:p:195-204
    DOI: 10.22610/imbr.v4i4.980
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    References listed on IDEAS

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    1. Alsadek Gait & Andrew Worthington, 2008. "An empirical survey of individual consumer, business firm and financial institution attitudes towards Islamic methods of finance," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 35(11), pages 783-808, September.
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    Cited by:

    1. Naseem Bakht Yar & Bakht Yar Akhtar & Irfanullah Khan & Saqib Khan, 2014. "The Application of Religious Appeal in the Strategic Marketing Communication of Financial Services in Pakistan for "Consumer Manipulation”," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(2), pages 88-99, February.

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