Determinants of growth of Islamic Retail Bank in Pakistan

Abstract

Purpose: to explore the determinants of growth of Islamic retail banking in Pakistan, and is tested in Pakistan . Design/methodology/approach: The quantitative methodology is adopted for completion of this paper, through three-fold approach. In first method, growth of Islamic banks is compared with conventional banks through financial statements key statistics for a period of recent three (3) years; in second method an instrument is used through customers of Islamic retail banks and their perspective is assessed; and in third methodology, another instrument is used through bankers of Islamic retail banks. Findings: Our findings include good bank spread, customers’ perspective of good returns on deposits and better services, part from religious cause of trend for Islamic retail bank; banks’ perspective of better Islamic alternate to retail banking needs. Research limitations/implications: Study is conducted in Pakistan only. It may expand by including more variables into research. Practical implications: Practical implication of this paper may relate to the policy makers in Islamic banks for development of products as per customer needs and demands. Originality/value: To devise better policy related to growth and expansion of Islamic banking in emerging economy.