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Determinants of growth of Islamic Retail Bank in Pakistan

Author

Listed:
  • Shahid Mohammad Khan Ghauri

    (Retail Banking,Faysal Bank Limited,Lahore, Pakistan)

  • Kashif Javaid

    (Retail Banking,MCB Bank Limited,Lahore, Pakistan)

  • Dr. Muhammad Ramzan

    (Professor of Research,Lahore University of Management Sciences,Lahore,Pakistan)

Abstract

Purpose: to explore the determinants of growth of Islamic retail banking in Pakistan, and is tested in Pakistan.Design/methodology/approach: The quantitative methodology is adopted for completion of this paper, through three-fold approach. In first method, growth of Islamic banks is compared with conventional banks through financial statements key statistics for a period of recent three (3) years; in second method an instrument is used through customers of Islamic retail banks and their perspective is assessed; and in third methodology, another instrument is used through bankers of Islamic retail banks.Findings:Our findings include good bank spread, customers’ perspective of good returns on deposits and better services, part from religious cause of trend for Islamic retail bank; banks’ perspective of better Islamic alternate to retail banking needs.Research limitations/implications: Study is conducted in Pakistan only. It may expand by including more variables into research.Practical implications: Practical implication of this paper may relate to the policy makers in Islamic banks for development of products as per customer needs and demands.Originality/value: To devise better policy related to growth and expansion of Islamic banking in emerging economy.

Suggested Citation

  • Shahid Mohammad Khan Ghauri & Kashif Javaid & Dr. Muhammad Ramzan, 2012. "Determinants of growth of Islamic Retail Bank in Pakistan," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 2(7), pages 70-84, December.
    • Handle: RePEc:mir:mirbus:v:2:y:2012:i:7:p:70-84
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    References listed on IDEAS

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