This paper evaluates and compares the performance of Sharia-compliant banks with their conventional counterparts operating in Pakistan. Data of five full-fledged Islamic banks and fifteen conventional banks, all from Pakistan, have been used for the study. Study period comprises of six years...

This conceptual paper is provoked by two interrelated queries. (a) Did Islamic finance industry adopt the wrong banking structure by choosing commercial banking as its core structure? (b) Does riba prohibition requires nuanced understanding in case of financing in a mutually beneficial,...

We examine the effects of physiology and spiritual sentiment on economic decision-making in the context of Ramadan, an entire lunar month of daily fasting and increased spiritual reflection in the Muslim faith. Using an administrative data set of bank loans originated in Turkey during 2003-2013,...

The purpose of this study is to identify the key determinant of the bank selection decision by Sudanese banks' customers. The motivation for this paper is the lack of research that empirically studied bank selection criteria that influence customers' selection decisions on banking services in...

This paper attempts to investigate the importance of Shariah compliance compared to other criteria that influence the selection of Islamic banks in Sudan, a total Islamic banking system in which the “Islamic” variable is supposed to be constant. Primary data collected by self-administered...

This paper designs a conceptual model of Islamic microfinance and rehabilitation by using the waqf funds for the slum and floating population. It analyzes both the primary and the secondary data on the current status of Islamic microfinance coverage (in thirteen countries), waqf estates (in...

We use a classic Merton credit risk framework to argue that Islamic Banking Institutions (IBIs) face less incentive to take on risks than Conventional Banking Institutions (CBI). IBIs have less incentive for risk shifting both in and outside of distress situations. We test and confirm this...

It appears from recent experiences that to-day's governance (Man-Mangement) has been degraded to such an extent that moral bankruptcy has become an integral part of day to day business activities -- as evidenced by experiences -- where righteousness is at a discount (account tampering,...

We perform principal component analysis (PCA) on an array of 20 financial ratios to explore and compare conventional and Islamic banks' financial characteristics. In contrast to the existing literature, this is the first study to use PCA to derive four components to examine the financial...

The purpose of this study is to analyze and evaluate the conventional and Islamic banking in Pakistan. For this study, sample of 19 conventional banks and 5 Islamic banks were selected. Camels approach is being used to evaluate the performance of both the conventional and Islamic banks. Ten...