Abstract:
This study aims to determine and compare thefinancial stability ofbanks during the crisis which
is still being debated by taking the period before and after the covid 19 pandemics. The study is a
comparison ofIslamic and Conventional Banking system ofPakistan as they are impacted by a
global pandemic. To find out and compare the performance of conventional banks with Islamic
banks and the resilience ofconventional hanks and Islamic banks to shocks. What and How the
pandemic effected both sectors ofthe banking industry in Pakistan. The measures banking industry
is taking to combat these uncertain situations. As a result ofthis study, we examine the impact of
COVID-19 on the performance of Islamic and commercial banks in countries with a dual-banking
system, as well as whetherIslamic banks outperform their commercial counterparts. The influence
on bankingperformance and how the banking sector responds to thepandemic (COVID-19) crisis
are also examined. Islamic andcommercial banks'financialperformance is compared in thisstudy
to establish the profitability of both sectors. Islamic and commercial banking's risk-absorbing
capabilities are also examined. For that variables that includes Total assets (T.A), return on assets
(ROA), Earning per Share (EPS), Cash and cash equivalent to total assets (CCE), Deposits to
Total Assets (DTA), Islamic Bank (IB), and Covid-19 (Covid) are some of the performance
measures available. This study compares and contrasts the financial results of Pakistani
conventional andIslamic banks. Islamic and conventional banks are included in thisstudyforthe
five-yearperiod beginning in 2016 andending in 2020. Wefind that Islamic banks tend to be more
stable in facingfinancial challenges due to the COVID-19 pandemic compared to conventional
banks. The peiformance ofconventional banks was veiy good in the period before the COVID-19
pandemic. However, when the coroncivirus pandemic began to be reported, there was a huge
decline in performance. Conventional bank recovery efforts have not been able to return to the
original track. Conventional bank performance is slowing down and it tends to be difficult to
return to its originalperformance value (before the COVID-19 outbreak).
