Countries with majority Muslim populations have adopted diverse legal systems. Those that were once English colonies e. With the death of the Prophet Muhammad incommunication of the divine will to human beings ceased so that the terms of the divine revelation were henceforth fixed and immutable.
Both descriptive and inferential techniques have been used. This is the first inferential study analyzing determinants of profitability in Islamic banks using panel data for the period The results are consistent with theory and other studies conducted in other countries.
We find that net markup income is positively associated with expense and assets and negatively with NPLs Non Performing Loans. Finance to deposits ratio is positively associated with NPL to net income, net markup income and expense to net markup income.
Our results suggest that assets growth is positively related with profitability ratios and is also positively influenced by deposits growth.
Introduction The second phase of Islamic banking in Pakistan got started in The first phase during the s under the patronage of Zia-ul-Haq was not successful.
Islamic finance is a growing industry almost everywhere. The industry is growing at a rapid pace and now, it has presence in Africa, Central Asia and North America.
Despite the financial crisis of and ongoing credit crisis, Islamic finance has sustained the growth momentum and hence has appeared as a potent, resilient and possibly an alternate financial architecture for post- crisis financial markets. According to some, this growth owes to some unique features inherent in Islamic financial products.
Adel explained the economic merits of Islamic banking by pointing out that credit expansion through Islamic banking is linked to the growth of the real economy by allowing credit primarily for the purchase of real goods and services.
It also requires the creditor to bear the risk of default by prohibiting the sale of debt, thereby ensuring that he evaluates the risk more carefully. Islamic finance is a broader term.
It includes Islamic banking, Islamic insurance known as Takaful and Islamic asset management Islamic mutual funds etc. Islamic banking is part of Islamic finance, but, both are used interchangeably sometimes.
It is because Islamic banking still represents a significant portion of Islamic finance with more institutions, asset base and client 1 Salman Ahmed Shaikh is faculty member at Institute of Business Administration, Karachi.
He is pursuing his PhD in Economics and has written several research papers and articles on Islamic Economics and Finance.
He can be contacted at: Furthermore, Islamic banking is practiced more commonly in the world than some of the institutions in Islamic finance which are in development stage. This study is focused on full-fledged Islamic banks working in Pakistan.
In Pakistan, currently there are 5 full-fledged Islamic banks operating and at least 15 conventional banks with Islamic banking branches. Figure 1 depicts the growth trend during the recent years in Islamic banking total assets, deposits and net financing and investments in Pakistan.
Islamic banking Bulletin, SBP, Various Issues The share of the Islamic banking industry in the banking system of Pakistan has risen to over 7 percent in from just 0.Factors Influencing Adoption of Islamic Banking: A Study from Pakistan Nain Tara Literature Review Adoption of Islamic Banking In current study Adoption to Islamic Bank (ADIB) is dependent variable which is used to have positive attitude and enough awareness towards Islamic .
The need to provide comprehensive comparative review of the literature on the Islamic banking sector in Pakistan, to discuss basic features of Islamic finance and banking, there is a need to introduce Islamic financial instruments in order to compare such to existing Western financial instruments and discuss the legal problems that investors in.
‘ Contemporary banking transactions and Islam's views thereon,’ Islamic Review, ‘ Non-interest banking in Pakistan: 1 M. Kabir Hassan, Sirajo Aliyu, A Contemporary Survey of Islamic Banking Literature, Journal of Financial Stability, CrossRef;.
literature review on islamic banking in pakistan. literature review on islamic banking in pakistan.
A Comparative Literature Survey of Islamic Finance and Banking hensive comparative review of the literature on the Islamic ﬁnancial system. Speciﬁcally, we discuss the basic features of the Islamic ﬁnance and banking.
modern Islamic banking was derived from these earlier forms of business relationships, with the disparity being. Islamic economics (Arabic: الاقتصاد الإسلامي ) is a term used to refer to Islamic commercial jurisprudence (Arabic: فقه المعاملات , fiqh al-mu'āmalāt)..
Islamic commercial jurisprudence entails the rules of transacting finance or other economic activity in a Shari'a compliant manner, i.e., a manner conforming to Islamic scripture (Quran and sunnah).