Regulatory Challenges of Islamic Banking in Pakistan
Abstract
Abstract Views: 429
This research investigated the regulatory challenges faced by Islamic banking from the perspective of Islamic bankers in Pakistan. The data were collected through crosssectional survey using a questionnaire from 152 bankers, selected through stratified convenient sampling, working at different Islamic banks of Lahore. The mean scores for overall 68 statements as well as for its sub-dimensions, namely, ‘Scope of Regulatory Authorities,’ ‘Development Issues with Regulatory System,’ ‘Licensing and Authorization,’ ‘Shari‘ah Supervision,’ ‘Supervisory Framework,’ ‘Institutional Harmonization,’ ‘Information Disclosure,’ ‘Market Development’ and ‘Capacity Building’ indicated the agreement of Islamic bankers with pre-formulated list of
regulatory challenges for Islamic banking. There was no statistically significant difference in bankers’ perceptions with regard to regulatory challenges for Islamic banking based on gender and nature of bank. However, the participants’ qualification, professional experience, and career levels appeared to be correlative of Islamic bankers’ perceptions regarding regulatory challenges for Islamic banking. The findings are helpful for policy makers to make strategic decisions for the development and growth of IB in Pakistan. This study comprises pragmatic insights of Islamic bankers and benefits both Islamic as well as other conventional banks adopting Islamic banking in order to increase their business opportunities. In addition, the results of this study may assist the policy makers and regulators in policy formulation regarding Islamic banking in Pakistan.
Downloads
References
Practice and Challenges. London: Zed Books, 1996.
Ahmad, Abu Umar Faruq, and Hassan M. Kabir. “Regulation and Performance of
Islamic Banking in Bangladesh.” Thunderbird International Business Review
49 no. 2 (2007): 251–277.
Ahmad, Abu Umar Faruq, and Hassan Kabir. “Legal and Regulatory Issues of Islamic
Finance in Australia.” International Journal of Islamic and Middle Eastern
Finance and Management 2, no. 4 (2009a): 305-322.
Ahmad, Abu Umar Faruq and Hassan M. Kabir. “Regulatory Challenges and
Opportunities: A Case of Australia.” Paper presented at the Practitioner
Symposium - Islamic Financial Services: What Role for Australia? Melbourne.
2009b.
Ahmed, Umer. “Challenges Facing Islamic Banking.” Economic Review 42, no. 2
(2011): 18-20.
Akhter, Waheed, Orangzab Ali Raza and Muhammad Akram. “Efficiency and
Performance of Islamic Banking: The Case of Pakistan.” Far East Journal of
Psychology and Business 2, no. 2 (2011): 54-70.
Alexakis, Christos and Alexandros Tsikouras. “Islamic Finance: Regulatory
Framework – Challenges Lying Ahead.” International Journal of Islamic and
Middle Eastern Finance and Management 2, no. 4 (2009): 90-104.
Butt Irfan, et.al. “Barriers to Adoption of Islamic Banking in Pakistan.” Journal of
Islamic Marketing 2, no. 3(2011): 259-273.
Chaker Mohammed N, and Naceur Jabnoun. “Barriers to Service Quality in Islamic
Banks in Qatar.” International Journal of Commerce and Management 20, no.
4(2010): 296 - 307.
Dahlia, El Hawary, Wafik Grais and Zamir Iqbal. “Regulating Islamic Financial
Institutions: The Nature of the Regulated.” World Bank Policy Research
Working Paper, 2004.
Hassan, M. Kabir and Mehmet F Dicle. “Basel II and Regulatory Framework for
Islamic Banks.” Journal of Islamic Economics and Finance 1, no.1 (2005):
17–36.
INCEIF, (2014). Accesssed
Iqbal, Munawar, Ausaf Ahmad and Tariqullah Khan. Challenges Facing Islamic
Banking Occasional Paper no. 1: Jeddah: Islamic Research and Training
Institute and Islamic Development Bank, 1998.
Ismail, Abdul Ghafar. “Islamic Banks and Wealth Creation.” ISRA Research Paper
no. 9 (2010) Kuala Lumpur: Malaysia.
Karbhari, Yusuf, Kamal Naser, and Zerrin Shahin, “Problems and Challenges Facing
the Islamic Banking System in The West: The Case of the UK.” Thunderbird
International Business Review 46 (2004): 521 – 543.
Khan, Asad and Abdul Qadir Shah. “A Comparative Analysis of Regulatory and
Supervisory Islamic Banking: Evidence from Pakistan, Malaysia, Bahrain, and
the UK.” The Lahore Journal of Business 4, no.1 (2015): 37–60.
Khan, Mohammad Mansoor and M. Ishaq Bhatti. “Why Interest‐Free Banking and
Finance Movement Failed in Pakistan.” Humanomics 22, no. 3 (2006): 145-
161.
Kinyanjui, Shamim Njeri. “Challenges Facing the Development of Islamic Banking.
Lessons from the Kenyan Experience.” European Journal of Business and
Management 5, no. 22 (2013): 94-102.
Mamun, Muhammad. “Prospects and Problems of Islamic Banking from Bank’s
Perspective: A Study of Bangladesh.” Paper presented at the 8th International
Conference on Islamic Economics and Finance (2011).
Mirza, Abdul Malik and Abdel-Karim Halabi. “Islamic Banking in Australia:
Challenges and Opportunities.” Journal of Muslim Minority Affairs 23, no.2
(2003).
Khattak, Naveed Azeem and Kashif-ur-Rehman. “Customer Satisfaction and
Awareness of Islamic Banking System in Pakistan.” African Journal of
Business Management 4, no.5 (2010): 662-671.
Perves, Mohammad Masud. “Legal and Regulatory Framework in Islamic Banking
System: Bangladesh Perspective.” European Journal of Business and
Management 7, no. 21 (2015):179-187.
Rauf, Ahamed Lebbe Abdul. “The Challenges and Opportunities for the Islamic
Banks in Non-Muslim Countries.” (2011).
Sarker, Md. Abdul Awwal. “Islamic Banking in Bangladesh: Performance, Problems
and Prospects.” International Journal of Islamic Financial Services 1, no. 3
(1997): 1-21.
This work is licensed under a Creative Commons Attribution 4.0 International License. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgement of the work’s authorship and initial publication in this journal.
.png){kind=icon}
