Islamic Banking and Finance Review

Advancing Islamic Art through Islamic Financial Institutions: A Case Study of Innovative Promotion Strategies

2025-08-21T11:22:16+00:00

This research scrutinizes the vital role of Islamic Financial Institutions (IFIs) in perpetuating and preserving Islamic art; a paradigmatic expression of Islamic culture distinguished by its intricate geometric patterns, calligraphic nuances, and spiritual leitmotifs. Despite its millennia-long significance, contemporary promotion and preservation of Islamic art are beset by formidable challenges precipitated by globalization, commercialization, and shifting cultural paradigms. IFIs, operating in consonance with Shariah principles, occupy a unique position to foster the advancement of Islamic art through ethical and socially responsible practices. By providing financial support, guidance, and infrastructure, they can help artists, artisans, and cultural institutions to preserve and promote Islamic art. Hence, this qualitative research undertakes a comprehensive examination of the strategic initiatives employed by IFIs to promote Islamic art, evaluates their efficacy, and identifies the challenges encountered by the IFIs. Through a methodological framework incorporating in-depth interviews and data triangulation, this study provides nuanced insights into their potential contributions to the preservation and promotion of Islamic art in the contemporary era, thereby illuminating the intersections between Islamic finance, art, and culture.

Islamic vs. Conventional Finance: Insights and Implications for Economic Growth

2025-08-21T11:21:48+00:00

This research aims to examine the effects of both conventional and Islamic financing on economic growth in five developing economies, namely, Saudi Arabia, Bangladesh, Malaysia, Pakistan, and the United Arab Emirates. This empirical study includes quarterly data from Q4 of 2013 through Q4 of 2020. The methodologies employed for empirical analysis are fixed-effects two-stage least squares (2SLS) and fixed-effects ordinary least squares (OLS). To address the problem of endogeneity in the model, the 2SLS method was applied in addition to OLS.

The results of the study indicate that Islamic finance surpasses traditional finance in accelerating economic growth, due to its more realistic and risk-sharing approach. Other factors that contribute to economic growth include investment, trade openness, and human capital. However, Inflation and foreign direct investment are revealed to have detrimental effects on economic growth in the sample countries.

For private businesses and government institutions, this research will help better understand the role and scope of the two financial systems namely conventiaonl and Islamic. It examines the available financing options and their respectivev effects on economic growth, stability, and resource allocation.

Previous studies on this subject are either single-country analyses or few with panel data to discuss the relationship between Islamic finance and economic growth. This panel data study simultaneously discusses the effect of both Islamic and conventional finance on economic growth.

ional finance on economic growth.

Impact of Fintech Adoption, Green Innovation, and Green Finance on Environmental Performance: Evidence From Pakistani Islamic Banks

2025-08-21T11:22:45+00:00

Guided by the resourced-based view (RBV) and the stakeholder theory, this study is motivated to examine the impact of fintech adoption (FA), green innovation (GI), and green finance (GF) on the environmental performance (EP) of Pakistani Islamic banks (IBs).A quantitative research methodology was adopted, employing a structured questionnaire to collect data from 209 bank managers, operations managers, and financial analysts. The respondents were selected using the stratified random sampling technique from the IBs operating in four major cities of Punjab, Pakistan, namely Lahore, Sialkot, Gujranwala, and Gujrat.SEM results confirmed that fintech adoption significantly enhanced environmental performance (β = 0.372, p = 0.000), implying that digital banking reduces resource consumption and improves operational efficiency. Green finance was also found to be a strong predictor of environmental performance (β = 0.426, p = 0.000), suggesting that financial institutions investing in green projects achieve better sustainability outcomes. Among the three independent variables, green innovation exhibited the highest impact on environmental performance (β = 0.498, p = 0.000), emphasizing the role of paperless banking, energy-efficient infrastructure, and sustainable financial practices.The findings underscore the critical role of fintech-driven financial solutions, green banking innovations, and environmentally responsible investments in enhancing sustainability in the Islamic banking sector. Policymakers should develop regulatory frameworks and provide incentives to encourage banks to promote green financial services and sustainability-driven fintech solutions. Future studies should conduct cross-country comparisons, adopt longitudinal designs, and explore moderating variables, such as government regulations and corporate governance structures This study examines the combined impact of fintech adoption, green innovation, and green finance on the environmental performance of Pakistan IBs, an area with limited empirical evidence.

Islamization of Banks in Pakistan: A review on Challenges and Prospects

2025-08-28T05:43:43+00:00

Islamic finance has emerged as an important research area for the past few decades especially across the Muslim-majority countries. Pakistan has experienced major transitions towards adoption of a fully Shariah-compliant financial system. The transition also includes changes in regulatory framework. Since the independence of Pakistan, it was clearly described in the objectives of the country that laws would be made in the light of Shariah principles. Efforts to Islamize the banking sector can be traced back to the very first constitutional workings under the Objective Resolution of 1949 to the 26^th amendment in the Constitution of 1973 in 2024. Moreover, potential challenges faced by Islamic Banks in Pakistan in the context of social, economic and religious consequences have also been examined extensively by prior studies. This paper aims to provides multiple guidelines by offering a comprehensive review about the regulatory, social, economic and religious consequences of Shariah compliant banking in Pakistan. For this purpose, the constitutional documents and research papers published in peer review journals are reviewed by applying the SPAR-4 literature review methodology. This paper has several valuable theoretical and practical implications as well as research directions for future studies in this field.

Making Road to Makkah Accessible for Pakistanis: Proposed Model from the Experience of Indonesia and Malaysia

2025-08-28T05:44:23+00:00

Hajj is one of the five pillars of Islam that is mandatory for every Muslim adult. For the management of Hajj funds, countries like Malaysia, Indonesia, Nigeria and Maldives etc. have established separate legal entities to provide services to pilgrims and administering the Hajj deposits that it can benefit them in the shape of Halal returns. This paper aims to evaluate the Hajj fund management of two economies i.e., Indonesia and Malaysia; analyzes the current structure of management of Hajj funds in Pakistan. The study suggests an efficient model for Pakistan’s Hajj fund management based on the best practices of Indonesia and Malaysia. The paper argues setting up of an independent entity, whereby public can start saving at an early age by entering into financial contract, thus efficient utilization of Hajj funds can be ensured that provides optimum facilitation to the potential pilgrims of Pakistan at a reasonable cost.