How Islamic Financial Institutions Policies Are Similar to Conventional Banking Policies

Abstract

This research finds out the similarities between the governance policies of Conventional and Islamic Banks of Pakistan which directly affects their efficiencies. The historical backdrop of conventional banks of Pakistan is prosperous in contrast with the Islamic ones. When similarizing Islamic banks with conventional banks, it is very important to know that Islamic banks in Pakistan is in its beginning phases and not many banks are working in this area who provide Islamic banking facility. The current research is led to discover similarities between the two banking areas, which are, traditional (conventional) and Islamic banking with regarding liquidity, efficiency and profitability. The information gathered is secondary from banks of each monetary area is taken for appraisal. The investigation of proportion and t-test is set up to choose the attributes of respondents and examination of relapse is applied to break down the differentiation in term of basic factors that sway customer confidence of Islamic banks and the business ones. The results of the exploration repudiate different past disclosures as the assessment shows that there is basic qualification between the two sorts of banking for the components under scrutiny. Moreover, effect of profit for resource is more on customer confidence for the time period (2013–2017) for the Islamic bank when stood out from the ordinary banking. The examination additionally looks at the noteworthy factors which are significant for development of Islamic banking.