Islamic Banking and Finance Review

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

Fatima Zahra, Muhammad Usman, Safrizal Shahir — Mon, 30 Jun 2025 00:00:00 +0000

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

Malik Muhammad, Iqra Shafi, Hafiz Abdur Rehman — Mon, 30 Jun 2025 00:00:00 +0000

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

Muhammed Shoaib Hassan, Ayesha Siddiqa, Muqaddas Waseem — Mon, 30 Jun 2025 00:00:00 +0000

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.