Global Advanced Research Journal of Management and Business Studies (GARJMBS) ISSN: 2315-5086 December 2014 Vol. 3(12), pp 548-559

Copyright © 2014 Global Advanced Research Journals   

 

Original Research Articles

Study of Performance Comparison Between Islamic and Conventional Banking in Pakistan

Yousaf Latif1, Ali Abbas2, Muhammad Nadeem Akram3, Shahid Manzoor4, Saeed Ahmad5

1Institute of  Management Sciences(IMS) Bahauddin Zakariya University, MultanE-mail: myousaf_latif@hotmail.com Tel:  +92-333-5745227

2Hailey College of Commerce, University of the Punjab Lahore, PakistanE-mail: mianali348@hotmail.com Tel:  +92-333-8974480

3Hailey College of Commerce, University of the Punjab Lahore, PakistanE-mail:   nadeemakram@live.com Tel:  +92-331-4022421

4Hailey College of Commerce, University of the Punjab Lahore, PakistanE-mail: shahidmanzoor09@yahoo.com Tel: +92-3134131676

5Institute of  Management Sciences(IMS) Bahauddin Zakariya University, Multan

E-mail: saeed6279@gmail.com Tel:  +92-346-7415798

Accepted 24 October 2014

 

Abstract

In Pakistan initial attempts were made in 1980s to Islamize the banking sector resulted into lot of changes in banking companies’ ordinance 1962. Since then, changes in financial system for allowing the issuance of interest free instruments, permission of Modaraba companies and Modaraba certificates’ floatation, establishment of commission for Transformation of Financial system (CTFS) and setting up of Islamic Banking Department by State Bank of Pakistan are major steps taken by government. The purpose of this study is to comprehend the nature of Islamic banks, measure and compare the performance of five Islamic banks with five conventional banks working in Pakistan over a period of five years from 2006-10. Performance comparison was conducted by trend analysis and using twelve financial ratios under category of profitability, risk, liquidity and efficiency. The study concluded that Islamic banks are less risky, more solvent and efficient than conventional banks but there is not much difference seen in terms of profitability. In respect of trend analysis balance sheet and income statement of Islamic banks revealed good positive trends as compared to conventional banks. The results of the study would be beneficial to current management of Islamic banks to improve their performance as well as potential stakeholders.

Keywords: Performance, ratios, trend analysis, conventional banks, Islamic banks

Related Articles


Original Research Articles
Mohammad KhosraviShakib
Cosmic contradiction between goodness and evil as a basic mythology in platform of Iranian culture, religion and literature
Glo. Adv. Res. J. Manage. Bus. Stud. June 2012 Vol: 1(1): - [Abstract] [Full Text - PDF] (156 KB)
Santiago Omar Ortiz López, Gabriel Arturo Pazmiño Solys, Edmundo Bolivar Cabezas Heredia, Mónica Paulina Espinoza Guano, José Luis Vasconez Fuentes and Juan Carlos Alarcón Gavilanes
Analysis of labor safety legislation and the evolution of professional diseases in Ecuador
Glo. Adv. Res. J. Manage. Bus. Stud. June 2017 Vol: 6(6): - [Abstract] [Full Text - PDF] (564 KB)
Farzin Salmasi
Determination the Invert Level of a Stilling Basin to Control Hydraulic Jump
Glo. Adv. Res. J. Manage. Bus. Stud. June 2012 Vol: 1(4): - [Abstract] [Full Text - PDF] (200 KB)
Maha E Salama, Wael S Ibrahim and Dina A Khairy
Comparison of CD10 expression in stroma of epithelial and mesenchymal tumors of the breast
Glo. Adv. Res. J. Manage. Bus. Stud. January 2015 Vol: 4(1): - [Abstract] [Full Text - PDF] (561 KB)
Rabia Salim Allari
Nursing Students’ Experiences of Work Place Violence During Clinical Placements: A Qualitative Study
Glo. Adv. Res. J. Manage. Bus. Stud. August 2016 Vol: 5(8): - [Abstract] [Full Text - PDF] (148 KB)
MSP. Lorena Inés Bernal Mendoza, MSP. Elvia Peña Marcial, ME. Leticia Reyna Ávila, MCE. Juan Yovani Telumbre Terrero
Epidemiological profile of a Community of the marginal area of the State of Guerrero, Mexico.
Glo. Adv. Res. J. Manage. Bus. Stud. July 2018 Vol: 7(7): - [Abstract] [Full Text - PDF] (129 KB)

Current Issue

Viewing Options

View Full Article - PDF
Download Full Article - PDF

Search for Articles

Yousaf Latif on Google Scholar
Yousaf Latif on Pubmed
Ali Abbas on Google Scholar
Ali Abbas on Pubmed
Muhammad Nadeem Akram on Google Scholar
Muhammad Nadeem Akram on Pubmed
Shahid Manzoor on Google Scholar
Shahid Manzoor on Pubmed
Saeed Ahmad on Google Scholar
Saeed Ahmad on Pubmed

Statistics

Viewed 3315
Printed 538
Downloaded 875
Powered By iPortal Works