Preview

comapison islamic and conventional banking

Good Essays
Open Document
Open Document
9157 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
comapison islamic and conventional banking
A thesis on

‘‘COMPARISON OF ISLAMIC AND CONVENTIONAL BANKING: A CASE
STUDY OF PRIVATE BANKS KARACHI, PAKISTAN’’

Submitted to: Faculty of Business Administration

In partial fulfilment of the requirements for the degree of MASTERS
OF BUSINESS ADMINISTRATION (MBA)

Supervised by:
Ms. Ambreen Faizan
Ms. Amna Munir

Submitted by:

Naveen Naqvi
Enrolment No: 2008/Bus.A/BBA/8317

Major Subject: Banking and Finance

Dedication
I dedicate this research work to my beloved parents specially my brother.

ABSTRACT
The core reason of conducting this research is to find the comparison of Islamic and conventional banking. From past few years the competition is highly increased between
Islamic and conventional banking. This project will help me in searching different variable in which these banks compete each other and which banking system is beneficial for society.
And these days the growing attraction of Islamic finance can lead the direct competition between both banking systems. Therefore the core objective is to seek the management efficiency of both banking system. Research indicates that how other variables help to improve the efficiency of both banking system. Around 188 samples were gathered and methodology used to check the impacts of different variables on both banking system. This research can help to guide the ways how to increased efficiency level and what factor contribute to increase the growth of both banking system.

Acknowledgement

The completion of my thesis would not have been possible without the help of these people:
First of all, I would like to thank my course in charge “Ms.Ambreen Faizan” & ‘Ms Amna
Munir’’ for her support and guidance.

I want to thank all the people who helped me with the collection of questionnaire.

I want to thank my parents, brother and all those people who have helped and supported me through this journey! But most of all I want to Thank Allah, for granting me strength to



Bibliography: Abdul Aziz Abdullah, R. S. (2012). Perception of Non-Muslims Customers towards Islamic Banks in Malaysia Abid Usman, M. K. (2012). Evaluating the Financial Performance of Islamic and Conventional Banks of Pakistan Addawe, S. (2012). What are the impacts of the global financial crisis on Islamic banking system and how Islamic bank spared from the crisis? ALMUTAIRI, H. (2010). A COMPARISON BETWEEN ISLAMIC AND CONVENTIONAL HOME FINANCING IN KUWAIT Azam Shafique, M. A. (2012). Impact of Global Financial Crises on the Islamic Banking System. Dato, T. S. (2010). CONVENTIONAL BANKING HANDBOOK. Kuala Lumpur: Institut Bank-Bank Malaysia. Dridi, M. H. (2010 ). The Effects of the Global Crisis on Islamic and Conventional Banks. IMF Working Paper . Ghafoor, A. A. (2009). COMPARISON OF ISLAMIC AND CONVENTIONAL BANKING IN PAKISTAN. Hanif, M. (2011). Differences and Similarities in Islamic and Conventional Banking. International Journal of Business and Social Science, 167-175. Haseeb Shahid, R. u. (2010). Efficiencies Comparison of Islamic and Conventional Banks of Pakistan. IQBAL, Z. (1997). ISLAMIC FINANCIAL SYSTEM. Finance ana Development , 42-45. KHAN, Z. (2010). COMPARISON OF ISLAMIC VS NON ISLAMIC BANKING. Kyeong Pyo Ryu, S. Z. (2012). A Comparative Study between the Islamic and Conventional Banking Systems and Its Implications Mian Muhammad Ashraf, Z.-u.-R. (2011). The Performance Analysis of Islamic and Conventional Banks Muhammad Azhar Sheikh, U. T. (2009). Islamic Vs Conventional Banks in Pakistan. Muhammad Farooq Shabbir, H. D. (2012). Perceived Service Quality of Islamic and Non Islamic Banks Operating in Pakistan Muhammad Hanif, M. T.-u.-M. (2012). Comparative Performance Study of Conventional and Islamic Banking in Pakistan Muhammad Jaffar, I. M. (2011). Performance comparison of Islamic and Conventional banks in pakistan Mulyany, H. F. (2009). ISLAMIC BANKING AND ECONOMIC GROWTH. JOURNAL OF ECONOMIC CORPORATION AND DEVELOPMENT, 59-74. RAJAEI-BAGHSIYAEI, M. (2011). The Contribution of Islamic Banking to Economic Development. E thesis Darhum university . Samad, A. (2004). PERFORMANCE OF INTEREST-FREE ISLAMIC BANKS VIS-À-VIS INTEREST-BASED CONVENTIONAL BANKS OF BAHRAIN Sanaullah Ansari, A. R. (2010). Financial Performance of Islamic and Conventional Banks in Pakistan. Solé, J. (2009). Introducing Islamic Banks into Conventional Banking Systems. Journal of Islamic Economics, Banking and Finance , 9-34. Thorsten Beck, A. D.-K. (2010). Islamic vs. Conventional Banking (Business Model, Efficiency and Stability)

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Both Frost and Reagan talk about theme of separation in their text. For instance, Frost talks about how the wall separates the narrator from his neighbor. Reagan talks about how the horrendous wall separates the city in half and keeping beloved families apart. These examples prove the theme of separation. Although these texts talk about the separation of walls, it also talks about how it affects people.…

    • 239 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Bibliography: Evans, T. T. (1987). Islamic Banking and the Prohibition of Usury in Western Economic Thought. National Westminister Bank Quarterly Review.…

    • 1074 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Mr Anees Razzak

    • 1252 Words
    • 6 Pages

    Despite exponential growth of Islamic banking in the last decades, Islamic finance is largely concentrated in specific parts of the Muslim world. The potential in non-muslim countries and remote parts of the world is overlooked in many instances. Nevertheless, increasing interest in Muslim and non-Muslim countries alike are contributing to the development of Islamic finance beyond historical boundaries.…

    • 1252 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    << THIS CAN BE USED FOR JOB APPLICATIONS / INTERVIEWS >> when they ask what do you expect a finance department do - OTHERWISE can be used for Financial Accounting assignments :)! Hope it helpsThe Finance DepartmentThe finance department of a business manages money for thebusiness/company. The department records the financial transactions ofa business and helps it plan for the future financially.…

    • 550 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    This report is specially meant for a student of Business Administration. It is concerned to a brief study of the operations, functions, Products and Services of Meezan Bank.…

    • 3710 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Islamic Banking

    • 2030 Words
    • 9 Pages

    This goal of this research is to find out if Islamic Banking is a better alternative to the Western, Conventional Banking. The information provided will reveal various Islamic Banking principles that would have prevented previous major economic crises and if applied globally today could prevent a major economic collapse.…

    • 2030 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    Tahir, S. (2003) Current Issues in the Practice of Islamic Banking. Presented at a course on Islamic banking and finance, Tehran, Iran, 2-6 March 2003…

    • 3294 Words
    • 14 Pages
    Best Essays
  • Powerful Essays

    Vendaros, A.M. ed., Current Issues in Islamic Banking and Finance: Resilience and Stability in the present System, World Scientific Publishing Co., Singapore, 2010…

    • 7311 Words
    • 30 Pages
    Powerful Essays
  • Powerful Essays

    References: Asyraf Wajdi, and Nurdianawati Irwani Abdullah. (2006). The Ideal Of Islamic Banking: Chasing A Mirage? Retrieved January 16, 2009, from www.asyrafwajdi.com/download.php?f=0013(downloaded-from asyrafwajdi.com).pdf AIMS-UK Islamic Banking and Finance, Musharakah and Mudharabah as Modes of Financing, retrieved 24 March 2009, from www.LearnIslamicFinance.com. Funding a Bussiness, 2009, retrieved 24 March 2009, from http://www.smeinfo.com.my/ H. Laalitha. (2009, March 7). Uptick in corporate financing defaults derived from biz.thestar.com.my/news/story.asp?file=/2009/3/7/business/3387762&sec=business Mehmet Asutay. (2007). Conceptualisation of the second best solution in overcoming the social failure of Islamic finance: Examining the overpowering of homoislamicus by homoeconomicus. IIUM Journal of Economics and Management 2007, 15, 1-17. Munawar Iqbal, and Molyneux, P. (2005). Thirty Years of Islamic Banking: History, Performance and Prospects. London: Palgrave Macmillan. Mohammed Akacem, and Gilliam, Lynde. (2002). Principles Of Islamic Banking: Debt Versus Equity Financing, Middle East Policy, 9 (1), p124-138. Muhammad Taqi Usmani. (2007). An Introduction to Islamic Finance, Maktaba Ma’ariful Qur’an, pg 49. Muhammad Anwar. (2001) Development of Mudharabah Instruments: Understanding Their Profitability, Securitization and Negotiability Aspects, IIUM Journal of Economics and Management 9, no.2, International Islamic University of Malaysia. Pg. 3 Tanzilur Rahman, 1999, Mudharabah and The Pakistan Perspective, retrieved 24 March 2009 from www.irtipms.org/OpenSave.asp?pub=67.pdf The Economist print edition. (2009,12th March). The jobs crisis. The Economist print edition. (2009,12th March). When jobs disappear SME Annual Report 2007 by Bank Negara Malaysia (BNM), retrieved 23 March 2009, from http://www.smeinfo.com.my/…

    • 8409 Words
    • 34 Pages
    Powerful Essays
  • Powerful Essays

    The Islamic banking and finance system is recent in origin. Its special features preclude the…

    • 4823 Words
    • 20 Pages
    Powerful Essays
  • Powerful Essays

    3-23. Obaidullah, M., ‘Islamic Banking and Finance: Theory and Practice’, Journal of King Abdulaziz University: Islamic Economics 17(1) 2004, pp. 45-49. Rice, G. ‘Islamic Ethics and the Implications for Business’, Journal of Business Ethics 18(4) 1999, pp. 345-358. Siddiqi, M.N., ‘Impact of Islamic Modes of Finance on Monetary Expansion’, Journal of King Abdulaziz University: Islamic Economics 4(1) 1992, pp. 37-46. Turen, S., ‘Performance and Risk Analysis of the Islamic Banks: The Case of Bahrain Islamic Bank’, Journal of King Abdulaziz University: Islamic Economics 8(1) 1996, pp. 3-14. Ullah, S. and D. Jamali ‘Institutional Investors and Corporate Social Responsibility: The Role of Islamic Financial Institutions’, International Review of Business Research Papers 6(1) 2010, pp. 619-630. Wilson, R. ‘Islamic finance and ethical investment’, International Journal of Social Economics 24(11) 1997, pp.1325-1342. Wilson, R. ‘Islam and Business’, Thunderbird International Business Review 48(1) 2006, p. 109. Zaman, S.M. H., ‘Mudarabah in Non-Trade Operations’, Journal of King Abdulaziz University: Islamic Economics 2(1) 1990, pp. 69-87. Zangeneh, H, and A. Salam, ‘Central Banking in an Interest-Free Banking System’, Journal of King Abdulaziz University: Islamic Economics 5(1) 1993, pp. 25-36.…

    • 8297 Words
    • 26 Pages
    Powerful Essays
  • Best Essays

    Zafar Ahmad Khan. 2000. Islamic Banking and Its Operations. London. Institute of Islamic Banking and Insurance.…

    • 834 Words
    • 4 Pages
    Best Essays
  • Powerful Essays

    The financial crisis actually benefitted Islamic Banking, while other conventional banks were having trouble during this time period. The industry’s assets grew 19% and then 20% the following year while other conventional banks in the rest of the world only grew less than 10%. And as stated before, since real estate was hit hard during the financial crisis,…

    • 604 Words
    • 2 Pages
    Powerful Essays
  • Powerful Essays

    Islamic Accounting

    • 14443 Words
    • 58 Pages

    Kuwait City, Kuwait. http://www.kfh.com/english/AboutUs/Annual-Report/AR2005/KFH-AR2005.pdf (accessed 19.02.08). Meezan Islamic Bank 2007. Annual Report 2006. Karachi, Pakistan. http://www.meezanbank.com/uploads/ArticlesnReports/AnnualReport2006.pdf (accessed 19.02.08). Mills, P.S., Presley, J.R., 1999. Islamic Finance: Theory and Practice. St. Martins Press, New York. Mishkin, F., 2007. The Economics of Money, Banking and Financial Markets, 8th ed. Addison-Wesley, Boston. Moody’s Investor Services, 2008. Credit opinion: Al Rajhi Bank. November. http://www.alrajhibank.com.sa/ar/reports/Documents/Moodys Investors Report.pdf (accessed 19.12.08). Morais, R.C., 2007. Don’t call it interest. Forbes, 23 July, pp. 122–132 (not inclusive). Nomani, F., 2006. The dilemma of riba-free banking in Islamic public policy. In: Behdad, S., Nomani, F. (Eds.), Islam and the Everyday World: Public Policy Dilemmas. Routledge, London, pp. 193–223. Oakley, D., 2008. Sukuk market: Clarification of rules does market a favour. Financial Times, June 19. www.ft.com (accessed 28.02.08). Oakley, D., 2007. Market for Islamic ‘mortgages’ to soar. Financial Times, March 31. www.ft.com (accessed 28.02.08). Pal, I., 2006. Islam and the Economy of Pakistan: A Critical Analysis of Traditional Interpretation. Oxford University Press, Karachi. Parker, M., 2006. Dow Jones Citigroup sukuk index launched. Arab News, 22 May. http://www.arabnews.com/?page=6§ion=0&article=82568&d= 22&m=5&y=2006&pix=business.jpg&category=Business (accessed 26.02.08). Presley, J.R., Sessions, J.G., 1994. Islamic economics: the emergence of a new paradigm. The Economic Journal 104, 584–596. Rammal, H.G., 2004. Financing through musharaka: principles and application. Business Quest. Journal of Applied Topics in Business and Economics (accessed 03.02.08) http://www.westga.edu/∼bquest/2004/musharaka.htm. Siddiqui, M.N., 2002. Dialogue in Islamic Economics. Lahore/London, Institute of Policy Studies/The Islamic Foundation. Soliman, S., 2004. The Islamic banking model in Egypt. In: Henry, C.M., Wilson, R. (Eds.), The Politics of Islamic Finance. Edinburgh University Press, Edinburgh, pp. 265–285. Standard and Poor’s, 2004. Islamic Development Bank. https://www.zawya.com/researchreports/zawyapr/IslamicDevelopmentBankrating.pdf (accessed 18.02.08). State Bank of Pakistan, 2005. Rate of returns under export finance scheme. Karachi, Pakistan. http://www.sbp.org.pk/incentives/efs/efs-rates.htm (accessed 03.02.08).…

    • 14443 Words
    • 58 Pages
    Powerful Essays
  • Powerful Essays

    islamic banking

    • 11265 Words
    • 46 Pages

    How different are Islamic banks from conventional banks? Does the recent crisis justify a closer look at…

    • 11265 Words
    • 46 Pages
    Powerful Essays

Related Topics