Determinants of Rapid Growth in Islamic Banking in Pakistan

Pensee Journal

Vol 75, No. 9;Sep 2013

Title: Determinants of Rapid Growth in Islamic Banking in
Pakistan
Muhammad Wahab
Institute of Management Sciences, Peshawar, Pakistan
Postal Address: R&DD, I-A, Sector E5, Phase-7, Institute of Management Sciences, Hayatabad Peshawar,
Pakistan
Tell: [phone] E-mail: [e-mail]

Dr. Owais Mufti
Institute of Management Sciences, Peshawar, Pakistan
Postal Address: I-A, Sector E5, Phase-7, Institute of Management Sciences, Hayatabad Peshawar, Pakistan
Tell: [phone] and [phone] E-mail: [e-mail]

Dr. Yasir Kamal
Institute of Management Sciences, Peshawar, Pakistan
Postal Address: I-A, Sector E5, Phase-7, Institute of Management Sciences, Hayatabad Peshawar, Pakistan
Tell: [phone] E-mail: [e-mail]

Abstract
In the financial world, Islamic banking has appeared as a strong alternative financial system and has recorded a remarkable growth within a short span of time. The interesting fact is that the Islamic financial system is not adopted by Islamic societies but also by most of the non-muslim societies. To provide a framework for discussion regarding the customer‟s perceptions of selecting Islamic bank the data for the study were collected by asking 119 respondents to rate their selection criteria of Islamic banking on 14 statements using five point Likert scale. Questionnaires were administered in two major cities of Pakistan
(Peshawar and Karachi) and SPSS was used to analyse the data. Three major factors, (i.e. Islamic motive,

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Pensee Journal

Vol 75, No. 9;Sep 2013

image and convenience) responsible for the clients selection of Islamic bank are acquired through factor analysis technique and they were further verified via “satisfaction level” of Islamic banks customers by using linear regression.
Keywords: Rapid Growth, Islamic Banking, Customer Satisfaction
1.

Introduction

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