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Exploring the determinants of Pakistani Islamic Bank: Empirical Survey

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  • Hameed, Abdullah

Abstract

The growth recorded by the banking industry in Pakistan prompted assess this advancement, the paper is an endeavor to measure and investigate the performance of Islamic banks in Pakistan over the period 2001 - 2014. In this profound dissection we assessed the interbank performance of Islamic banks in Pakistan. The realization of this target is guaranteed through building an investigation. The empirical research has been made in four significant performance indicators for banks i.e. profitability, risk, solvency and liquidity. Mean, standard deviation, T-test and F-test has been utilized to test the significance of the consequences of the sample. The essential finding of the survey relied on annual reports of banks. This study figures out that not just Islamic banks are less productive than the commercial banks in Pakistan, however the fundamental modes of Islamic keeping money, Mudharabah and Musharakah, are not mainstream in Pakistan.

Suggested Citation

  • Hameed, Abdullah, 2014. "Exploring the determinants of Pakistani Islamic Bank: Empirical Survey," MPRA Paper 59789, University Library of Munich, Germany, revised 07 Nov 2014.
    • Handle: RePEc:pra:mprapa:59789
    as

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    File URL: https://mpra.ub.uni-muenchen.de/59789/1/MPRA_paper_59789.pdf
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    References listed on IDEAS

    as
    1. Shaikh, Salman & Jalbani, Amanat, 2008. "Risk Management in Islamic and Conventional Banks: A Differential Analysis," MPRA Paper 19460, University Library of Munich, Germany, revised Mar 2009.
    2. 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, LAR Center Press, vol. 2(7), pages 70-84, December.
    3. Martin Čihák & Heiko Hesse, 2010. "Islamic Banks and Financial Stability: An Empirical Analysis," Journal of Financial Services Research, Springer;Western Finance Association, vol. 38(2), pages 95-113, December.
    4. Karim, Rifaat Ahmed Abdel, 2001. "International accounting harmonization, banking regulation, and Islamic banks," The International Journal of Accounting, Elsevier, vol. 36(2), pages 169-193, May.
    5. Fouzia Ali & Hassan Raziq & Abdul Aleem & Shahrukh Latif & M. Arslan & Arsalan Shah Muhammad, 2011. "Customer Satisfaction and Islamic Banking in Pakistan," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 1(4), pages 89-96.
    6. Aggarwal, Rajesh K & Yousef, Tarik, 2000. "Islamic Banks and Investment Financing," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 32(1), pages 93-120, February.
    7. Said Jaouadi & Ilhem Zorgui, 2014. "Exploring Effectiveness and Efficiency of Banks in Switzerland," 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(4), pages 313-325, April.
    8. repec:pkp:ijoass:2011:p:89-96 is not listed on IDEAS
    9. Fouzia Ali & Hassan Raziq & Abdul Aleem & Shahrukh Latif & M.Arslan & Arsalan Shah Muhammad, 2011. "Customer Satisfaction and Islamic Banking in Pakistan," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 1(4), pages 89-96, November.
    10. Khuram Shahzad Bukhari & Hayat M. Awan & Faareha Ahmed, 2013. "An evaluation of corporate governance practices of Islamic banks versus Islamic bank windows of conventional banks," Management Research Review, Emerald Group Publishing Limited, vol. 36(4), pages 400-416, March.
    11. Marliana Abdullah & Shahida Shahimi & Abdul Ghafar Ismail, 2011. "Operational risk in Islamic banks: examination of issues," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 3(2), pages 131-151, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    banks; profitability; liquidity; islamic banking; pakistan;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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