COMPARISON BETWEEN MCB CONVENTIONAL BANK AND MEEZAN ISLAMIC BANK IN KARACHI

Abstract

A Shariah-compliant Islamic bank is one that follows the rules and regulations ofthe Islamic faith. Here, Riba-free and ethical transactions are conducted, and they actively participate in the Islamic economy's objectives and aspirations. The main activity oftraditional banks is to establish interest rates. From 2017 through 2021, this research analyses the performance of Islamic and conventional banks in Pakistan. This study has examine and evaluate the performance of Pakistan's Islamic (Meezan) and conventional (MCB) financial institutions between 2017 and 2021. Considering that both types of banks are active in Pakistan and no earlier study has focused on them, Pakistan was chosen as the study's primary focus. According to this study, does an Islamic bank in Pakistan outperform the country's other financial institutions? Financial parameters for liquidity, profitability, solvency, and activity used to analyse the overall performance of the banks in both categories. Conventional banks in Pakistan would be more profitable than Islamic ones from 2017 to 2021 according to the research. Traditional Pakistani banks fall short in terms of liquidity, debt-to-asset ratios, and asset turnover when compared to Islamic banks. Despite Islamic banking's strong performance across a range of parameters, conventional banking in Pakistan is more efficient between 2017 and 2021 than it is now