Skip to main content

Performance of Islamic banking in Pakistan

Background and Literature Overview


There has been large scale growth into the Islamic banking in Muslim countries and around the world during the last twenty years as the performance growth is influenced by factors including the introduction of broad macroeconomic and structural reforms in financial systems, the liberalization of capital movements, privatization, the global integration of financial markets, and the introduction of innovative and new Islamic products. Islamic finance is now reaching new levels of sophistication. However, there has been presence of Islamic financial system with its identifiable instruments and markets is still very much at an early stage of evolution. Many problems and challenges relating to Islamic instruments, financial markets, and regulations must be addressed and resolved. In Islamic banking rules apply which differ from those in traditional banking as there consequences of Islamic banking for financial operations as there goes in examining in several Islamic procedures as being introduced by Pakistan's banking sector ever since the year 1985. Considering the drastic change in procedures, (Cornelisse and Steffelaar, 2008 p. 687) the effect of Islamization on the banking sector performance has been moderate. One reason for the reality, is that banks in Pakistan have consistently opted for financial instruments closely resembling interest based finance aside, certain behavior did have determined within large extent by the fact that these banking sectors are owned by the state of Pakistan (Cornelisse and Steffelaar, 2008 p. 687).


Objectives


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 Pakistan can encounter. Indeed, there is importance of having in empirical assessment of performance of Islamic banking in Pakistan which there will highlight regulations, challenges and problems in the Islamic banking market. Thus, the main objectives is to review the growth of the Islamic banking on global basis, assess its performance based on latest financial data available, discuss its salient products/services, evaluate for departures from traditional Islamic principles, to offer suggestions for improvement based on the experience of the authors and evidence provided by literature studies in research area. Furthermore, the need to integrate several performance of Islamic banking in Pakistan, recognizing in certain banks in Pakistan, the assuming performance of the banking sector, the linking of reliable literature information towards banking performance will be imperative in this research denoting to research questions as well as hypothesis



Questions



  1. What is performance? What constitutes Islamic banking performance?

  2. What is an Islamic bank? How is organization of the bank formed according to framework/structure?

  3. Any aspects of Islamic bank in Pakistan that implies to positive and or negative performance?

  4. How is performance manifested in terms of management and control assumptions? Discuss



Hypothesis


H1: There is positive performance of Islamic banking in Pakistan


H2: There is negative performance of Islamic banking in Pakistan



Methodology


For the research method, the need for the study to demonstrate understanding of performance factors linked in the banking sectors of Pakistan, regarding organization and facts towards Islamic banking operations through the research process of collating cases from within Pakistan context as there may imply to performance measures and analysis in determining study factors that influence performance involvement of banks. The methodology will be in utilization of certain case study analysis allowing statistical variation of performance analysis of Islamic banks as well as the using of several secondary resources, the study endeavors to the application of awareness of stable financial performance of such Islamic banks and how methods assimilation is useful into the research practice. The Islamic banks will persist in taking the easy and risk adverse route and avoid profit and loss sharing contracts as the desire to withhold information must be negligible and systems must be put in place which allows efficient and open profit and loss share instruments to develop and be able to create suggestions as to how venture capital can be developed into Pakistan setting, without fear of banking operations collapsing or being restricted in the performance development.



Reference



Cornelisse, P. and Steffelaar, W. (2008). Islamic Banking in Practice: the Case of Pakistan. Development and Change Volume 26 Issue 4, Pages 687 - 699 Published Online: 22 Oct 2008, 2009 Institute of Social Studies



Comments

Popular posts from this blog

Research Proposal Sample on Smoking among school children 9thgrade to 12th grade in the sultanate of Oman

TITLE/Name of the proposal:   Factors affecting smoking among school (9th &12th) grade in Oman : Smoking among school children 9thgrade to 12th grade in the sultanate of Oman   1-INTRODUCTION   The age of smoking initiation has dropped over the past four decades. Since behaviors and attitudes adopted in late childhood or early adolescence predicts future smoking, it is important to understand the smoking and other risk-taking behaviors and attitudes of children aged 12 and younger. There supports the idea of early identification and targeting of children at high risk of smoking in middle school, possibly as early as grade seven.   2-AIM OF THE STUDY a- There is a need to amicably evaluate such knowledge, attitude as well as behavior of school children in Oman those in 9 th and 12 th grade and inform them with regards to the consequences of smoking mostly affecting their health conditions; b- There is utmost goal for describing substantial affective factors associated wi

Sample Research Proposal on The Influence and Impact of Advertising to Consumer Purchase Motive

Introduction   Today's market is characterised by highly competitive organisations which are all vying for consumer's loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth. However, external factors are not the only elements which influence growth. There are also internal factors, components working within the organisation which shape the direction of the company. Along with the changing business world, customers change as well, becoming more demanding and knowledgeable than before. In turn, company management had shifted their focus on their clients or customers so as to stay successfully in business. This transition meant that organisations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centred. Hence, in order to bring out exceptional custome

The analysis on the external and internal environment of Primark retailing industry

Introduction The omnipresence of global trends and innovations debunk the idea of business monopoly and empire states. Today, the trends are set to maximize the potential of human powers by trivializing simple phenomena in order to fashion complex and subtle effects. In the minds of prominent sociologists and philosophers these trivialization of occurrences brought about by man's deepest desire of uncovering the truth and meaning of life. However, our correspondence and connection with the truth is indirect and diluted which can only be accessible via representations and constructs. Hence, the necessity, though, not necessarily is, of excavating the truth embedded on phenomena became an ordinary human laborious pursuit. Moreover, due to rapid changes on various aspects of human life our reactions vary depending on the way we perceive it, while forming effective and efficient mechanisms become a mechanical elocutionary act. This fact is paralleled with the nature and condition of b