Investigating Critical Resemblances of Islamic Banking with Conventional: Binary Matrices as Solution Methodology

Identifying, ranking, exhuming and classifying the relations among the critical resemblances between Islamic and conventional banking is aim of this study. It also discusses the structure of these resemblances and devises valuable guidelines for discerners. It follows qualitative paradigm of research philosophy and overall design consists of review of literature, data collection and analysis. Literature review is used to prepare a list of resemblances, Interpretive Structural Modelling (ISM) is employed for ranking, exhuming and modeling the relationships among resemblances, whereas, cross impact matrix multiplication applied to classification (MICMAC) for substantiating the results of ISM by classifying factors into independent, dependent, linkage and autonomous clusters. Through the discourse of literature review a list of eighteen critical resemblances has been prepared. Results of ISM show that resemblance in rating system and resemblance in public perception occupy highest rank therefore are least critical, whereas, resemblance in settlement of cost of funds and similar employee qualification occupy bottom of the model therefore are the most critical. MICMAC analysis validates the results of ISM. This study is helpful to discerners who want to understand differences and similarities between two paradigms of banking. It is equally useful for regulators, management, employees, customers, researchers, religious scholars and society at large being an original attempt by the authors substantiated by real time survey data collected from experts on the issue.