Challenges Of Islamic Banking In Pakistan
This is to evaluate the current state in terms of market performance modes of.
Challenges of islamic banking in pakistan. Islamic banking and endorsement of innovative aspect is related with administration level response. This chapter bring insights on the background current state issues challenges and avenues of future policy regarding islamic banking of pakistan. Islamic banks have developed a number of lending instruments but little research has been done in devising the tools to attract the deposits. Challenges of islamic banking in pakistan by shaikh asif zaheer dr.
5 full fledged islamic banks and 16 conventional banks having standalone islamic banking branches by end december 2017. This study is being coxed on performance measurement of islamic banking sector of pakistan. One study of which modes of islamic finance were used most frequently found pls financing in leading islamic banks had declined from 17 34 in 1994 6 to. Islamic banking in pakistan is also facing some challenges owing to the fact that conventional banking in the country is more penetrative and holding larger share in the economy.
This valuates position of islamic finance and islamic banking around. The islamic banking industry starting from scratch in 2001 02 has grown manifolds and in 2013 have achieved approx. Explicitly faysal bank and mcb are related with banking aspect and much associated with. However the sector is facing certain challenges as well.
Islamic banks at least in saudi arabia and egypt have departed from using profit loss sharing techniques as a core principle of islamic banking according to a 2006 dissertation by suliman hamdan albalawi malaysia has also seen a decline. 10 share of total banking industry despite tough economic conditions. Along with these two challenges in pakistan islamic banking also facing legal and regulatory framework challenge that is beyond its immediate access. Muslim people everywhere want islamic banking.
The islamic banking industry in pakistan has grown rapidly over the last few years. The empirical data about islamic banking has been collected from the state bank of pakistan for the period 2003 2018. Pakistan to give an example the network of islamic banking industry consisted of 21 islamic banking institutions. 50 journal of islamic banking and finance july september 2019 islamic finance.
The objective of this study is to investigate the major challenges and opportunities for islamic banking and sme s sector in pakistan. International finance corporation in 2014 reveals that there. The prospect of islamic banking is very bright. The study has intended to show that islamic banking sector of pakistan may work at its optimal level if the altogether separate banking regulatory framework.