Classical Islamic Principles and the Current Model of Islamic Banking in Pakistan
Keywords:
banking laws and regulations, criticism, Islamic banking and finance, perception, regulator
Abstract
Abstract Views: 242
This paper is aimed to assess the overall perception of the users and stakeholders of Islamic banking towards Islamic banking and finance (IBF). It also intends to find out the crucial points which make the current practices of Islamic banking doubtful for the people and to suggest the appropriate remedial measures to bring about the practices of Islamic banking closer to the teachings of Islam and the Shari’ah. Direct survey method was used to assess and evaluate the perception of the users of Islamic banking and financé. However, the study was circumscribed by the opinions of the survey participants, who were limited in number and scattered across a few major cities of Pakistan. The findings revealed that a negative perception about Islamic banking persists due to the various similarities in the procedures, practices, products, and legal framework of Islamic and conventional banks. Moreover, the negative perception is also due to the fact that the same regulator regulates both the banking systems.
Keywords
Banking laws and Regulations, Criticism, Islamic Banking and Finance, Perception, Regulator
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References
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Zubair, H. M., &Chaudhary, N. G. (2014). Islamic banking in Pakistan: a critical review. International Journal of Humanities and Social Science, 4(2), 161-176.
Zuryati, Z. A., Yusoff, M., &Azrae, A. N. (2009). Separate legal entity under Syariah law and its application on Islamic banking in Malaysia: A note. International Journal of Banking and Finance, 6(2), 139-154.
Akhtar, N., Mehmood, M. T., Pervez, M. Z., Aslam, F., &Akhtar, H. M. A. (2016). Factors influencing the perception of customers in islamic banking: a case study in Pakistan. International Review of Management and Business Research, 5(3), 844.
Alomar, I. (2016). Financial Intermediation in Muslim Community: Issues and Problems.
Awan, A. G. (2009). Comparison of Islamic and conventional banking in Pakistan. Proceedings 2nd CBRC, Lahore, Pakistan, 1-36.
Azmat, S., Azad, A. S., Ghaffar, H., &Bhatti, I. (2015). Why interest free Islamic banking is not free from interest?. (accessed on Oct. 22, 2017).
Azmat, S., Skully, M., & Brown, K. (2015). Can Islamic banking ever become Islamic? Pacific-Basin Finance Journal, 34, 253-272.
Bashir, M. S. (2013). Analysis of customer satisfaction with the Islamic banking sector: case of Brunei Darussalam. Asian Journal of Business and Management Sciences, 2(10), 38-50.
Butt, I., Ahmad, N., Naveed, A., & Ahmed, Z. (2018). Determinants of low adoption of Islamic banking in Pakistan. Journal of Islamic Marketing, 9(3), 655-672.
Chen, B., &Masih, M. (2017). Are the Islamic and conventional money markets really highly correlated? MGARCH-DCC and Wavelet approaches.
Danjuma, I., Kumshe, H. M., Daneji, B. A., & Ibrahim, A. K. (2015). Customers’ Perception of Non-interest Banking Services by Deposit Money Banks: Evidence from Nigeria. Journal of Islamic Banking and Finance, 3(2), 57-65.
Dr. MonzerKahf. (2015). Question Answers on Islamic banking. Fatawas on Islamic banking.
Hafeez, D., & Muhammad, M. (2013). Evolution of Corporate Entity in Islamic and Western Perspective. South East Asia Journal of Contemporary Business, Economics and Law, 2(3).
Hanif, M. (2014). Differences and similarities in Islamic and conventional banking. International Journal of Business and Social Sciences, 2(2).
Hassan, A., Chachi, A., & Abdul Latiff, S. (2008). Islamic marketing ethics and its impact on customer satisfaction in the Islamic banking industry. Journal of King Abdulaziz University: Islamic Economics, 21(1).
Jhon Foster (2012), How Shari’ah Compliant is Islamic banking? (BBC News].
Khattak, N. A. (2010). Customer satisfaction and awareness of Islamic banking system in Pakistan. African Journal of Business Management, 4(5), 662-671.
Latif, Y., Abbas, A., Akram, M. N., Manzoor, S., & Ahmad, S. (2016). Study of performance comparison between Islamic and conventional banking in Pakistan. European Journal of Educational and development psychology, 4(1), 17-33.
Malik, M. S., Malik, A., & Mustafa, W. (2011). Controversies that make Islamic banking controversial: An analysis of issues and challenges. American Journal of Social and Management Sciences, 2(1), 41-46.
Mejia, A. L., Aljabrin, S., Awad, R., Norat, M. M., & Song, M. I. (2014). Regulation and supervision of Islamic banks (No. 14-219).International Monetary Fund.
MU Chapra. T. Khan. (2014). Regulation and supervision of Islamic banks (No. 14-219).Islamic Research and Training Institute, Islamic Development Bank.
Mughal, Z. S. (2016). Social Sciences, Jamhuriat aur Islami Bankari: Fikri Pas Manzar aur Tanqeedi Jaeza. Democracy and Islamic Banking: Ideological Background and Critique] Lahore: Legacy Books.
Muhammad Shoaib, I. (2017). Promising Progress of Modaraba Sector of Pakistan.
Muhammad, T., Mamman, D., &Tangaza, M. A. (2019). Controversies and Challenges of Islamic Banking: Analysis of Regulatory Reform. Journal of Contemporary Research in Business, Economics and Finance, 1(1), 12-15.
MujlisulUlama.S.A. (2016).The Concept of Limited Liability— Untenable in the Shari’ah.
Oladimeji, M. A., Aziz, M. R. A., &Khairi, K. F. (2016). Regulatory Requirements for Establishment and Operation of Islamic Banking System: A Proposed Model with Primary Requirements. Journal of Islamic Legal Studies| ISSN-2519-1535, 2(01), 40-54.
Raza, A. (2012). Is riba-free banking possible?
Sanusi, M. M. (2013). The concept of artificial legal entity and limited liability in Islamic law. Critical Issues on Islamic Banking.
Sarakenos.[2015]. Islamic banking – Cheating Allah.
Shah, B. A., Niazi, G. S. K., &Majid, A. (2016).Employees' Perceptions about Islamic Banking and its Growth Potential in Pakistan. Business & Economic Review, 8(1), 53-76.
Thambiah, S., Eze, U. C., Santhapparaj, A. J., &Arumugam, K. (2011). Customers' perception on Islamic retail banking: A comparative analysis between the urban and rural regions of Malaysia. International Journal of Business and Management, 6(1), 187.
Usmani, T. (2011).Ṣukūk and their contemporary applications. Retrieved from the internet, by ISRA.
Usmani, T. (2008). Islamic Finance: Musharakah & Mudarabah. Journal of Islamic Banking and Finance, 25(3), 41-53.
Velayutham, S. (2014).“Conventional” accounting vs “Islamic” accounting: the debate revisited. Journal of Islamic Accounting and Business Research, 5(2), 126-141.
Yusof, R. M., Bahlous, M., &Tursunov, H. (2015). Are profit sharing rates of mudharabah account linked to interest rates? an investigation on Islamic banks in GCC countries. JurnalEkonomi Malaysia, 49(2), 77-86.
Zakiah, F., & Al-Aidaros, A. H. (2016). Behavioral Determinants and their Impacts on Customers’ Saving Deposits in Islamic Banks. International Journal of Economics and Financial Issues, 6(7S), 296-303.
Zubair, H. M., &Chaudhary, N. G. (2014). Islamic banking in Pakistan: a critical review. International Journal of Humanities and Social Science, 4(2), 161-176.
Zuryati, Z. A., Yusoff, M., &Azrae, A. N. (2009). Separate legal entity under Syariah law and its application on Islamic banking in Malaysia: A note. International Journal of Banking and Finance, 6(2), 139-154.
Published
2021-12-27
How to Cite
Minhas, I. H. (2021). Classical Islamic Principles and the Current Model of Islamic Banking in Pakistan. Islamic Banking and Finance Review, 8(2), 55-85. https://doi.org/10.32350/ibfr.82.03
Section
Articles
Copyright (c) 2022 Imran Hussain Minhas
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