Abstract:
Islamic banking is seen as a revival of Islam in recent times. Malaysia is
considered a hub and leader in Islamic banking with over 140 billion dollar
industry. The country has proper academic and regulatory framework too support
it. Pakistan also sought to build a strong ethical finance industry and eliminate
interest but due to constant political turmoil this dream has not been realized as of
yet. So in this study we will compare the two industries. Their history and current
status and also their performance as well. Malaysia and Pakistan are two of the
largest Muslim population countries in the world with over 90% population. So it
will be interesting to study how these countries have tackled this emerging field of
finance which is showing great potential for growth.
