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There has been large scale growth into the Islamic banking in Muslim countries and around the
world during the last twenty years as the performance growth is influenced by factors
including the introduction of broad macroeconomic and structural reforms in financial systems,
markets, and the introduction of innovative and new Islamic products. Islamic finance is now
reaching new levels of sophistication. However, there has been presence of Islamic financial
system with its identifiable instruments and markets is still very much at an early stage of
evolution. Many problems and challenges relating to Islamic instruments, financial markets,
and regulations must be addressed and resolved. In Islamic banking rules apply which differ
from those in traditional banking as there consequences of Islamic banking for financial
Pakistan's banking sector ever since the year 1985. Considering the drastic change in
procedures, (Cornelisse and Steffelaar, 2008 p. 687) the effect of Islamization on the banking
sector performance has been moderate. One reason for the reality, is that banks in Pakistan
have consistently opted for financial instruments closely resembling interest based finance
aside, certain behavior did have determined within large extent by the fact that these banking
sectors are owned by the state of Pakistan (Cornelisse and Steffelaar, 2008 p. 687).
Objectives
The need to provide comprehensive comparative review of the literature on the Islamic
banking sector in Pakistan, to discuss basic features of Islamic finance and banking, there is a
need to introduce Islamic financial instruments in order to compare such to existing Western
financial instruments and discuss the legal problems that investors in Pakistan can encounter.
banking in Pakistan which there will highlight regulations, challenges and problems in the
Islamic banking market. Thus, the main objectives is to review the growth of the Islamic
banking on global basis, assess its performance based on latest financial data available,
discuss its salient products/services, evaluate for departures from traditional Islamic principles,
to offer suggestions for improvement based on the experience of the authors and evidence
provided by literature studies in research area. Furthermore, the need to integrate several
assuming performance of the banking sector, the linking of reliable literature information
Questions
framework/structure?
3. Any aspects of Islamic bank in Pakistan that implies to positive and or negative
performance?
Discuss
Hypothesis
Methodology
For the research method, the need for the study to demonstrate understanding of performance
factors linked in the banking sectors of Pakistan, regarding organization and facts towards
Islamic banking operations through the research process of collating cases from within
Pakistan context as there may imply to performance measures and analysis in determining
study factors that influence performance involvement of banks. The methodology will be in
utilization of certain case study analysis allowing statistical variation of performance analysis
of Islamic banks as well as the using of several secondary resources, the study endeavors to
the application of awareness of stable financial performance of such Islamic banks and how
methods assimilation is useful into the research practice. The Islamic banks will persist in
taking the easy and risk adverse route and avoid profit and loss sharing contracts as the desire
to withhold information must be negligible and systems must be put in place which allows
efficient and open profit and loss share instruments to develop and be able to create
suggestions as to how venture capital can be developed into Pakistan setting, without fear of
Reference
Cornelisse, P. and Steffelaar, W. (2008). Islamic Banking in Practice: the Case of Pakistan.
Development and Change Volume 26 Issue 4, Pages 687 - 699 Published Online: 22 Oct 2008,