geistscience.com · Web viewMuhammad Asif, Assistant Professor, Indus University, Karachi,...

ISLAMIC BANKING SYSTEMAND CUSTOMER SATISFACTION

(A case study of financial growth in Islamic banking sector in Pakistan and its practices)

Muhammad Asif, Assistant Professor, Indus University, Karachi, Pakistan.

Abstract

During the last couple of years, it has been a matter of great concern to a customer for making

sure if Islamic Banks in Pakistan do practice Shariah Principles in their daily banking. Different

school of thoughts and their conflict of interest have also raised a question among such

customers. With parallel to this it is also observed that there has been great financial growth in

Islamic Banks of Pakistan during last decade. This research intends to investigate if Islamic

Banks in Pakistan with their financial growth are able to satisfy their customers and gain

confidence among them with respect to Islamic banking practices as per Shariah Principles. For

this purpose, Regression Curve Estimation is applied on Quarterly Deposits of Islamic Banks in

Pakistan (from March 2003 to December 2013) to find out growth during the period. Whereas,

customer satisfaction is validated with the help of questionnaire designed to measure general as

well as specific satisfaction. For this purpose, Bank Reputation is taken as dependent variable to

show satisfaction level of customers towards Islamic Banking Practices, and, Product Quality,

Confidence in Product, Service Quality and Customer Care are taken as independent variables

to show their influence on customer satisfaction. A sample size of 200 respondents and their

consents are included to be the part of study. Correlation and Multiple Regression is used to see

significant relationship between dependent and independent variables as well as the impact of

predictors on Bank Reputation. Results show that there has been 17.7% financial growth found

of 23

in Islamic Banks over the period of a decade and they have also been able to maintain

confidence among customer towards their perception about Islamic Banking Practice as per

Shariah Principles. More specifically, Product Quality has been highly significant to have

impact on Bank Reputation. Results could have been more significant if lager size of sample had

been taken into consideration by involving cities across Pakistan other than Karachi. This

research is also an initiative to open doors for all policy makers to introduce such products that

may have transparency in terms of documentation as well as practices. Hence, government,

policymakers and Shariah Advisory Board including all religious scholars should come a head

to introduce Islamic Financial Products with modification and to resolve such issues which

creates doubts among customers causing great hindrances for Islamic Banks to pace towards

progress and success.

Key Words :

Islamic Banking Practices, Shariah Principles, Deposits of Islamic Banks & Customer

Satisfaction

of 23

INTRODUCTION

Islam puts much emphasis on “intention” towards any kind or good deeds. And so, kind deeds

shown off by an individual just for the sake of fame has no meaning in Islam. At one place,

Hadith says :

Abu Hurairah reported Allah’s Messenger (peace be upon him) as saying:

“Verily Allah does not look to your face and your wealth but He looks to your heart and to your

deeds’’. (Sahih Muslim, Vol. 4, p. 1362)

It is narrated on the authority of Umar ibn al-Khattab who said : I heard the Messenger of God

say :

Allah’s Apostle said,

“The reward of deeds depends upon the intention and every person will get the reward according

to what he has intended. So whoever emigrated for Allah and His Apostle, then his emigration

was for Allah and His Apostle. And whoever emigrated for worldly benefits or for a woman to

marry, his emigration was for what he emigrated for” (Saheeh Al-Bukhari-51).

of 23

The above hadith reveals that the first example was that of the person who migrated to Medina

purely for the sake of God, seeking His pleasure and seeking to fulfill His command. The

Prophet (peace be upon him) stated that the deed of this type of person will be accepted by God

and he will be rewarded in the fullest. Whereas, the second example was of a person who

fulfilled this religious service outwardly, but his intention was not the pleasure of God nor

fulfilling His command, and so this type of person, although he may achieve what he was

intending in this life, will not receive reward for it from God, and the deed is not one which is

considered acceptable.

A muslim in all respect tries to follow the teachings of Islam. His intentions are reflected through

his act the way he does. He has firm belief in being rewarded against good deeds not only in this

world but in the life after death.

It is only for the sake of Allah’s happiness that a muslim keeps himself away from any act that

may cause annoyance of Allah. Among such acts, Interest is also one of the prohibitions where

Islam becomes very much strict. About Interest, it is clearly mentioned in Qura’an :

And if you do not do it, then take a notice of war from Allâh and His Messenger but if you

repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital

sums), and you shall not be dealt with unjustly (by receiving less than your capital sums).

(Al-Baqarah-279)

of 23

The above Quranic verse clearly restricts muslims from interest. Hence, a true muslim could

never think of carrying out any transaction that includes the factor of interest. At the same time,

it is also the matter of fact that no one can totally avoid interest in today’s world. According to

hadith, it is said that :

Hazrat Abu Hurairah r.a. reported that the Prophet said : A time will certainly

come over the people when none will remain who will not devour usury. If he does not devour it,

its vapour will overtake him. [Ahmed,Abu Dawood,Nisai,Ibn Majah]

Taken from Mishkat-ul-Masabih (volume 11, 218-227)

Hence, today’s time is the time period when people, even if they don’t want to, carry out their

transactions in the presence of interest with heavy heart. However, there comes the need of

proper implementation of Islamic Financial System to replace Conventional Financial System in

order to establish an economic system that is based on interest free financial system. Since it is

impossible for a financial system to exist in the absence of financial institutions, Islamic Banks

are also considered as an important factor (backbone) in order to ensure the existence of Islamic

Financial System.

As far as the activities of Islamic Banks are concerned, it can be classified into two groups. One

of the groups is based on such activities where in muslim countries due to laws and regulations,

it is not allowed to carry out any activity based on interest (riba). In such countries, there is no

competition between Islamic Banks and conventional banks. On the other hand, the other group

faces high competition in the presence of conventional banks as they operates their activities in

of 23

non-Muslim or Muslim countries where interest rate-based banking is not forbidden. (Farahani &

Dastan, 2013).

As far as the growth in the field of Islamic Banks is concerned, a reasonable growth has been

witnessed during the last more than two decades not only in muslim countries but also in non-

muslim countries. Realizing the importance of asset-based banking, analysts recommend Islamic

Banks as a back-bone for the establishment of a well-developed Islamic economy.

Growth in any sector depends upon certain factors such as size of the firm, financial resources,

presence of technological capabilities, product diversification, diversified geographic market,

access to qualified workers and managers, location of business, government policies and working

capital etc. Focusing exclusively on the growth in Banking sector and its determinants, it is

found through different research that return on equity has positive relationship with the level of

interest rates, bank concentration and government ownership (Molyneux & Thorton, 1992).

According to another research , there is a positive association between the bank interest spread

and the default risk, opportunity cost of non-interest bearing reserves, leverage and management

efficiency (Angbazo, 1997). Research also finds that equity ratio, loan-assets ratio, operating

expenses ratio, and total assets explain about 67% of the variation in return on assets (Al-Omer & Al-

Mutairi, 2008).

It is also observed that growth in Islamic banks depends on rates of profit of Islamic bank, base

lending rate, consumer price index, inter-banking operating rate, religious belief of customers,

domestic tax rate policy, macroeconomic environment (Hassan, Sanchez & Safa, 2013).

of 23

Since, Islamic Banking System is expected to be practiced as per the principles of Shari’ah,

researches find that there are some doubts about it. At one side, one cannot ignore the growth

and development that has been made in Islamic Banking sector, but on the other side, it is also to

be of great concerns whether these banks have been able to bring their customers in confidence

with respect to practices of Sharia’ah Principles in daily bankings. Consequently, there comes

the other factor in terms of customer satisfaction with respect to religiosity which causes Islamic

Banking sector to grow. Islamic Banks in Pakistan have two types of customers. Among those

there is a type of customers who simply believe that the bank is an Islamic bank and they are

treated under the shed of Islamic teachings during their banking visit hours. Whereas, the other

type of customers belong to those for whom Islamic banking practices and religiosity are of great

concern. They feel that Islamic Banks are of the concerns more towards financial growth rather

than practice of Sharia’ah Principles. This ambiguity among customers may lead to a very

serious issue and may also cause Islamic banks to lose even their current customers.

PROBLEM STATEMENT

There is no doubt to accept a reasonable and visible financial growth in Islamic Banking sector

in Pakistan. This sector has also been able to spread its network throughout Pakistan successfully

within the time period of more than a decade. But, at the same time, it raises a question if they

have also been able to satisfy their customer towards its banking practices as per Shariah

Principles. Therefore, this research intends to investigate about financial growth in Islamic

banking sector, its practices as per Shariah Principles and customer satisfaction towards it.

of 23

OBJECTIVE OF THE RESEARCH

The objective of this research is to find out if Islamic Banks have been really able to satisfy their

customers with respect to its practices as per Shariah Principles where at the same time a

reasonable financial growth has also been shown in this sector. On the other way, this research

attempts to analyze general and specific perception of customers towards Islamic Banking

System in Pakistan. General perception leads to ordinary matters of banking system, whereas,

specific perception leads to matters related to Islamic Banking System and its practices as per

Shariah Principles. The research is also expected to come up with results that may identify if

these factors have significant impact on growth of Islamic Banking sector in Pakistan which is

ultimately one of the main objectives of Islamic Financial System towards the establishment of

Islamic Economic System.

LITERATURE REVIEW

As far as the development in banking sector is concerned, a research has found that there are

internal as well as external factors that determine growth and development of banks. Internal

factors may include cost to income ratio, equity to total assets (capital adequacy), loan to

customers & short-term funding and size of bank (total assets). Whereas, external factors may

include annual change in GDP, inflation rate, money supply growth, market capitalization to

total assets of the deposit and total assets of deposit money to GDP (Kosmidou, 2008).

of 23

Research finds that determinants such as rates of profit of Islamic bank, rates of interest on

deposits of conventional bank, base lending rate, Kuala Lumpur composite index, consumer

price index, money supply and gross domestic product have different impact on deposits at both

Islamic and conventional banking systems. In most cases, customers of conventional system

behave in conformity with the savings behaviour theories. In contrast, most of these theories are

not applicable to Islamic banking customers. Therefore, there is a possibility that religious belief

plays an important role in the banking decisions of Muslim customers (Haron & Azmi, 2008).

A research finds that customer satisfaction in banking cannot depend on one or two customer

satisfaction approaches. Since customer are expecting more and more every day, there can be no

exact combination of several approaches that may be taken as base indicators for all banks. But

research has brought three determinants which are to be considered the most important for any

bank. They are : speed of services and decision process, security of funds and high confidence,

friendliness and helpfulness of personnel. It is also recommended that high service quality and

effective delivery system mix may have major short and long term impact on banks activities and

their competitive position. (Akdag & Zineldin, 2011)

If we go in details, the Islamic banking and finance discipline is around forty years old. By 2003,

there were 176 Islamic banks around the world in different Asian and European countries with

their total assets of approximately $147 billion. If we take a look on South Asian countries,

Islamic banking, in Pakistan, has been growing recently at a faster pace under the duel banking

system. It is also being followed more rigorously in Bangladesh under the increasing market and

public demands. At present, we find six fully dedicated Islamic banks with more than 100

of 23

branches which run their affairs throughout the major cities of Pakistan. Other than these, there

are nine conventional banks that have 62 fully committed Islamic banking branches across the

country (Akhtar, 2006).

During the last decade, it is observed that there has been strong and fast growth in Islamic

finance and banking throughout the world. It is found through research that investment behavior

of a Muslim is influenced by Islam and its modes of finance. However, it depends upon the

religiosity of an individual up to which the investment is influenced (Imran & Mark, 2011).

Research suggests that policymakers need to analyze and realize the importance of Islamic

Financial System in developing countries like Pakistan. It may provide basis to such economic

body to look for the ways through which Islamic Financial System can be implemented

successfully with no doubts in the mind of potential investors who may bring a positive change

in economic activities of a country, ultimately, causing economic growth rate to be increased.

Realizing the significance of Islamic Investment Trend, the Shariah Board should also play its

vital role to practice Islamic Financial System as per the rules and regulations described by

Quran and Sunnah (Asif, Iqbal and Zaighum, 2014).

As far as different behaviors of Islamic banking customers are concerned, one possible reason

for deviation in their behavior is the results of Islamic teachings. Many of the verses in Qur’an

are found through which followers are encouraged to save irrespective of economic situations.

Therefore, at any time when there is growth in the economy and an increase in M3, composite

index, and CPI, they will continue to increase deposits at Islamic system. However, it is

of 23

interesting to observe whether they will continue to save even during economic downturn (Haron

& Azmi, 2008).

According to a research, an investor behavior is definitely influenced by Islam and its principles,

however, it depends upon the degree of religiosity of an individual which effects investment

made by him. Moreover, there has been evidences among Muslim investors about “Western

Style” of wealth maximization as well as a desire to consider sustainable investment principles in

asset allocations (Tahir & Brimble, 2011).

It is observed that personnel at Islamic banks are not well trained in terms of exercising Shariah

principles towards achieving true objectives of Islamic Financial System. Since majority of staff

members have gained experience from conventional banks and have been serving Islamic banks

now, their main focus is only towards eliminating interest from banking transaction. Many of the

organizations arrange different conferences, seminars and training sessions to train personnel at

Islamic banks but it is not enough to help them develop with financial-cum-Shariah competence

(Khan & Bhatti, 2008).

It has also been generally observed that people living in Pakistan have doubts about Islamic

Banks and their practices. Especially the dispute among different religious scholars and conflict

of interest about Islamic Bank System has raised a big question mark on Islamic Banks in

Pakistan, their practices and their performances. At one side, Mufti Taqi Usmani is considered to

be the founder of introducing Islamic Banking System under the regulation of Shariah Board. On

the other hand, he also comments that Islamic Banking is not a pure Islamic Banking System but

of 23

it is a step towards it. It was on his recommendation that initially (for the mean time), Ijaarah and

Murabaha was taken as preliminary financial products, and , it was decided that later Islamic

Banks will divert their business towards Musharaka and Mudaraba (which are considered to be

main financial products). But study shows that the major business activities of Islamic Banks are

based on Ijaarah and Murabaha, whereas, Musharaka and Mudaraba are given secondary

priorities (Zarwali, 2014).

With reference to a research, Shariah Supervisory Board has an important role to play in

ensuring Islamic banking practices as per Shariah Principles and good corporate governance for

Islamic Banks. It is because Shariah Supervisory Board serves two main functions. First of all, it

is made sure that no Islamic Bank is violating any of the Shariah Principles. Violating to such

principles would result in losing confidence among investors and clients. Secondly, when

individual is well aware of such principles and comply strictly with them, it becomes difficult for

Islamic banks to violate Shariah Principles (Masood, Niazi & Ahmad, 2011).

Hence, on the basis of above review, a question may be raised into the mind of an individual if

Islamic Banks have been able to satisfy their customers in terms of banking practices as per

Shariah Principles along with attaining reasonable financial growth.

RESEARCH LIMITATIONS

This research was limited to the study of Financial Growth in Islamic Banks in terms of

percentage increase in Deposits of Islamic Banks, whereas, customer satisfaction towards

of 23

Islamic Banking Practices (specifically) was determined by four variables among which Service

Quality and Customer Care have been used as variables to reflect general customer satisfaction,

whereas, Confidence in Product and Product Quality (as main variables) have been used to

reflect customer satisfaction towards Islamic Banking Practices in Pakistan. Data for Quarterly

Deposits of Islamic Banks was collected from March 2003 till December 2013 through available

sources of State Bank Of Pakistan, whereas, data for customer satisfaction was gathered trough

primary source and a questionnaire was designed to be filled by 200 respondents in Karachi

through random sampling.

METHODOLOGY

The purpose of this research is to analyze the financial growth of Islamic Banks in Pakistan over

the time period of 2003 to 2013 and customer satisfaction towards its practices as per Shariah

Principles. For this study, growth of Islamic Banks is represented by growth in Deposits of

Islamic Banks and quarterly data of Deposits has been gathered through Islamic Banking

Bulletin (quarterly) from the website of State Bank of Pakistan covering the time period of from

March 2003 to December 2013. To check the growth of Islamic Banks, Curve Estimation

Regression was applied by taking Deposits of Islamic banks as Dependent Variable and Time as

Independent Variable. On the other hand, a questionnaire has also been designed to find out

Customer Satisfaction being represented by Bank Reputation with its determinants of four

different independent variables in which two variables reflects customer satisfaction towards

Islamic Banking Practices. Service Quality and Customer Care have been used as variables to

reflect general customer satisfaction, whereas, Confidence in Product and Product Quality (as

of 23

main variables) have been used to reflect customer satisfaction towards Islamic Banking

Practices in Pakistan. Data was collected through random sampling of 200 questionnaires filled

by different respondents. In order to check satisfaction level of customer, correlation and linear

regression has been applied to check the significant effect of four variables on Customer

Satisfaction named as Bank Reputation.

RESULTS

Curve Estimation Regression was applied on Deposits of Islamic Banks to check financial

growth of Islamic Banks in Pakistan during March 2003 to December 2013. Results are shown in

the following tables :

Curve Fit

Model Description

Model Name MOD_4Dependent Variable 1 Deposits of Islamic BanksEquation 1 Growtha

Independent Variable Case sequenceConstant IncludedVariable Whose Values Label Observations in Plots Unspecified

a. The model requires all non-missing values to be positive.

Model Summary and Parameter EstimatesDependent Variable:Deposits of Islamic Banks

Equation

Model Summary Parameter Estimates

R Square F df1 df2 Sig. Constant b1

Growth .705 95.375 1 40 .000 20.175 .177

of 23

According to the table of Model Summary it may be interpreted that the model of Curve

Estimation Regression is very strong with R-Square of 0.705 which shows that 70.5% variation

in Deposits of Islamic Banks is explained by Time. The sig. value ‘0.000’ with Parameter

Estimates of b1=0.177 shows that there has been 17.7% financial growth found in Islamic Banks

during the time period of March 2003 till December 2013. The graph of Curve Estimation also

shows a visible financial growth in Islamic Banks with a rising curve towards right.

In order to see if there is significance relationship between dependent variable and all

independent variables, Correlation test was applied on dependent variable with each independent

variable separately.

of 23

Correlations

BANK

REPUTATION

PRODUCT

QUALITY

BANK REPUTATION Pearson Correlation 1 .540**

Sig. (2-tailed) .000

N 185 185

PRODUCT QUALITY Pearson Correlation .540** 1


N 185 185

**. Correlation is significant at the 0.01 level (2-tailed).

Above results show that there is significant positive correlation between Bank Reputation and

Product Quality with Correlation value of 0.54.

Correlations

BANK

REPUTATION

CONFIDENCE

IN PRODUCT



N 185 185

CONFIDENCE IN PRODUCT Pearson Correlation .419** 1


N 185 185


Results also show that there is significant correlation of 0.419 between Bank Reputation and

Confidence in Product.

of 23

Correlations

BANK

REPUTATION

SERVICE

QUALITY



N 185 185

SERVICE QUALITY Pearson Correlation .340** 1


N 185 185


It is also justified from above results that Service Quality is significantly correlated with Bank

Reputation have a correlation value of 0.34.

Correlations

BANK

REPUTATION

CUSTOMER

CARE



N 185 185

CUSTOMER CARE Pearson Correlation .447** 1


N 185 185


Finally, Customer Care is also significantly correlated with Bank Reputation carrying a value of

0.447.

of 23

Hence, significant correlation of all independent variables with dependent variable justify the

application of linear regression to find out significant effect of predictors on Customer

Satisfaction. Results computed through linear regression are shown as under :

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .647a .419 .406 .52187

a. Predictors: (Constant), CUSTOMER CARE, CONFIDENCE IN

PRODUCT, PRODUCT QUALITY, SERVICE QUALITY

The above table shows results of model summary which implies that almost 42% variation in Customer Satisfaction (Bank Reputation) is explained by independent variables.

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 35.345 4 8.836 32.444 .000a

Residual 49.024 180 .272

Total 84.369 184

a. Predictors: (Constant), CUSTOMER CARE, CONFIDENCE IN PRODUCT, PRODUCT

QUALITY, SERVICE QUALITY

b. Dependent Variable: BANK REPUTATION

ANOVA test shows that the model is best fit for regression with significant value of 0.000.

of 23

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.

Collinearity Statistics

B Std. Error Beta Tolerance VIF

1 (Constant) .113 .310 .364 .716

PRODUCT

QUALITY

.446 .077 .366 5.771 .000 .803 1.245

CONFIDENC

E IN

PRODUCT

.229 .064 .222 3.563 .000 .831 1.203

SERVICE

QUALITY

.041 .079 .037 .522 .602 .633 1.579

CUSTOMER

CARE

.257 .071 .259 3.600 .000 .623 1.604

a. Dependent Variable: BANK REPUTATION

Coefficient Table shows that there is no multi-collinearity found among independent variables

and except Service Quality, rest of the variables significantly play their role towards Customer

Satisfaction (Bank Reputation). Looking at Standardized Coefficients, it is observed that Product

Quality is highly significant as compare to other independent variables which shows that

Customer’s Satisfaction towards Islamic Banking practices highly depends upon Product

Quality. Even tolerance value of Product Quality (0.803) shows that its independent role in

Customer Satisfaction is 80.3% which is highly reasonable. Thus, for a customer dealing with

Islamic Banks, Product Quality is of prime importance, whereas, Confidence in Product, Service

Quality and Customer Care are of secondary importance.

CONCLUSION

of 23

This research was conducted for the purpose of making sure if Islamic Banks in Pakistan are able

to gain confidence among customers in parallel with financial growth over the time period of

more than a decade. To study the Financial Growth of Islamic Bank, Regression Curve

Estimation was applied on quarterly data of Deposits of Islamic Banks as dependent variable and

Time (from March 2003 till December 2013) as independent variable. On the other hand,

Regression Analysis was used to find out effect of Product Quality, Confidence in Product,

Service Quality and Customer Care on Bank Reputation to represent Customer Satisfaction.

Results show that Product Quality is highly significant to Bank Reputation in order to satisfy

customer. On the contrary, Service Quality has been found to be insignificant which proves that

customers who keeps their accounts with Islamic banks do not prioritize Service Quality over

Product Quality. For them, product quality and its nature is highly important. Therefore, it is

concluded on the basis of this research that Islamic Banks in Pakistan have really shown a visible

financial growth over the period of more than a decade, but at the same time, it has also gained

confidence among customers with respect to its practices as per Shariah Principles. Even though

the sample size was very small and limited to citizen of Karachi, but more significant results may

be concluded on the basis of larger size of sample with more cities across Pakistan other than

Karachi.

SUGGESTIONS AND RECOMMENDATIONS

On the basis of above results and conclusion, it cannot be denied about obvious financial growth

in Islamic banking sectors of Pakistan. At the same time, these Islamic Banks have also been

able to bring confidence among customers in terms of banking practices as per Shariah

of 23

Principles. Therefore, now it becomes the responsibility of government to create such favorable

environment through which this banking sector may flourish in future. Training and development

programs may be introduced at government level to impart knowledge to individual and to

educate a banker to initiate more Islamic Financial Products in banking sectors. Shariah

Advisory Board should also activate itself to monitor and to make sure that no bank is below the

line of following Shariah Principles. Hence, government, policymakers and Shariah Advisory

Board including all religious scholars should come a head to resolve such issues which creates

doubts among customers causing great hindrances for Islamic Banks to pace towards progress

and success. Doors should also be open to an individual who has never been a part of Islamic

Banking System so that more people may have a diversion towards success of Islamic Banking

Practices in Pakistan.

of 23

REFERENCE

Akhtar S., The financial sector of Pakistan-the roadmap, Islamic Finance News, 3(16), 11-12

(2006)

Akdag, H.C., Zineldin, M. (2011), “Strategic positioning and quality determinants in banking

service”, The TQM Journal, Vol. 23 No. 4, pp. 446-457.

Angbazo, L. (1997), ‘‘Commercial bank net interest margins, default risk, interest-rate risk, and

off-balance sheet banking’’, Journal of Banking and Finance, Vol. 21, pp. 55-87.

Al-Quran, Al-Baqarah, Chapter-02, Verse-279

Dusuki, A.W. and Abdullah, N.I. (2006), Why do Malaysian customers patronize Islamic

Banks?, International Journal of Bank Marketing, Vol 25 No. 3, pp. 142-160.

Farahani, Y.G., Dastan, M. (2013), “Analysis of Islamic banks’ financing and economic growth:

a panel cointegration approach”, International Journal of Islamic and Middle Eastern

Finance and Management, Vol. 6 No. 2, pp. 156-172.

of 23

Husain AL-Omar Abdullah AL-Mutairi, (2008),"Bank-Specific Determinants of Profitability:

The case of Kuwait", Journal of Economic and Administrative Sciences, Vol. 24 No. 2,

pp. 20 – 34

Haron, S. and Azmi, W.N.W., (2008), “Determinants of Islamic and conventional deposits in the

Malaysian banking system”, Managerial Finance, Vol. 34 No. 9, pp. 618-643

Hassan, M.K., Sanchez, B., Safa, M.F. (2013), “Impact of financial liberalization and foreign

bank entry on Islamic banking performance”, International Journal of Islamic and Middle

Eastern Finance and Management, Vol. 6 No. 1, pp. 7-42.

Imran, T. and Mark, B. “Islamic Investment Behavior”, International Journal of Islamic and

Middle Eastern Finance and Management, Vol. 4 No. 2, pp. 116-130.

Khan, M.M. and Bhatti, M.I. (2008), “Development in Islamic banking: a financial risk-

allocation approach”, The Journal of Risk Finance, Vol. 9 No. 1, pp. 40-51.

Kosmidou, K. (2008), “The determinants of banks’ profits in Greece during the period of EU

financial integration”, Managerial Finance, Vol. 34 No. 3, pp. 146-159.

Molyneux, P. and Thorton, J. (1992), ‘‘The determinants of European bank profitability’’,

Journal of Banking and Finance, Vol. 16 No. 6, pp. 1173-8.

Masood, O., Niazi, G.S.K., Ahmad, N. (2011), “An analysis of the growth and rise of

smaller Islamic banks in last decade”, Qualitative Research in Financial

Markets, Vol. 3 No. 2, pp. 105-116.

Saheeh Bukhari, Vol.1, Book 2, Number 51

Tahir, I., Brimble, M. (2011), “Islamic Investment Behavior”, International Journal of Islamic

and Middle Eastern Finance and Management, Vol. 4 No. 2, pp. 116-130.

Zarwali, Dr. M. (2014), “Naam Nihaad Islami Bankari”, Jamia Arabia Ahsan-ul-Uloom,

Karachi, Pakistan.

of 23

geistscience.com · Web viewMuhammad Asif, Assistant Professor, Indus University, Karachi,...

Documents

Transcript of geistscience.com · Web viewMuhammad Asif, Assistant Professor, Indus University, Karachi,...