Global Financial Sector Research Articles

Block Chain-Powered Cloud Data Integrity Verification System with Excellent Effectiveness

The "next-generation financial technology," or blockchain, is praised for its peer authentication security features, which include virtual money, data encryption, and hash value creation. Cloud computing is widely used due to its efficiency, and the global financial sector sees a vast market for security. Blockchain technology is examined in this article along with its developments and application to cloud computing in healthcare and electronic vehicle security. Verification, oversight, and dependable data storage are made possible by the virtual machine agent mechanism, which is crucial for maintaining blockchain integrity. The Merkel hash tree's unique hash values are used by blockchain smart contracts to keep track of data modifications. Users are notified of data manipulation through a "block-and-response" procedure. Data security and trustworthy computing are still issues in spite of the growth of cloud computing. Different approaches, such as data integrity tests and secure multi-party computations, have been proposed by researchers; however, these frequently encounter problems related to complexity and scalability. This paper investigates the ways in which blockchain technology can help with these issues by providing a decentralized method for improving cloud computing security and storage. Keywords— Blockchain, money, security, cloud service, technology, big-data, data, healthcare ;

TURKISH PARTICIPATION BANKING WITH THE IMPACT OF DIGITAL BANKING: 2020 - 2023 PERIOD ANALYSIS AND EVALUATION

Participation banking is one of the banking types operating in line with Islamic principles. As is known, the banking sector is one of the most technology-intensive sectors today. The healthy and sustainable development and digital transformation of participation banking is gaining momentum in Turkey as in the global financial sector. The prominent factors in digital banking are mobile banking usage, call centre statistics, total number of digital customers, transaction volume and transaction distribution of participation banks. In this study, it is aimed to make a digital analysis and evaluation of Turkish Participation Banking. Thus, capturing future trends in participation banking, ensuring sustainability and strategic planning analyses can be designed much more efficiently. The analyses cover the period 2020-2023. The fact that the analysis period coincides with the beginning of the pandemic is also meaningful in terms of the effects of the digital outlook, which gained momentum after the pandemic, on participation banking. For example, while the number of customers acquired in remote customer acquisition statistics was 23,618 in the last month of 2021, it corresponds to a proportional increase of 148% with 58,594 in the 9th month of 2023. While digital banking active customer usage was 81.36% only in mobile banking in the 2nd period of 2020, it was 88.86% with an increase of 7.5% in the 2nd period of 2023. As a result of this study, it is expected that participation banking will become more widespread in the future and competition with conventional banks will gain a different dimension in the field of digitalisation.

Challenges and Opportunities of ESG Integration in Financial Operations

In contemporary society, with the burgeoning concern for sustainable development among the populace, Environmental, Social, and Governance (ESG) criteria have emerged as a pivotal discourse within the global financial sector. Responsible investment is increasingly paramount, directing capital flows towards enterprises and ventures of greater sustainability. Against this backdrop, the integration of ESG criteria into financial operations poses both a significant challenge and opportunity for financial institutions. Architects and providers of financial products and services are gradually incorporating ESG factors into their decision-making processes to align with escalating regulatory demands and meet investors' expectations of social responsibility. Nevertheless, this transition is not devoid of challenges. Issues such as data acquisition and quality, regulatory uncertainty, and inadequate comprehension of ESG values among market participants constitute substantial obstacles that the financial realm must surmount in the pursuit of ESG integration. Nonetheless, through a series of strategies and recommendations, such as enhancing data transparency and quality, bolstering relevant education and training for market participants, and advocating for regulatory authorities to formulate clearer and more unified directives, financial institutions can harness technological advancements to optimize the analysis and integration of ESG data, thereby paving the way for new opportunities.

The Role of Fintech on Enchancing Financial Literacy and Inclusive Financial Management in MSMEs

Fintech has transformed the global financial sector, providing more efficient, inclusive, and accessible financial services. Fintech has great potential to improve access to financial services, financial literacy, and more effective financial management for Micro, Small, and Medium Enterprises (MSMEs). MSMEs often experience barriers in accessing traditional financial services, which can hinder their business growth and sustainability. Fintech offers solutions that are more flexible and tailored to the needs of MSMEs, such as online loans with lighter terms, digital payment systems that facilitate transactions, and financial management applications that assist MSMEs in managing their finances more effectively. In addition, fintech also plays a role in improving MSMEs' financial literacy through digital financial education and training, which is crucial in helping them make informed financial decisions. This research uses descriptive method and literature analysis. Data was received from other studies that reviewed the role of fintech in the context of MSMEs. The results show that fintech has great potential to improve access to financial services, especially in developing countries. Fintech can improve the operational efficiency of MSMEs through solutions such as digital payments and financial process automation, which can help MSMEs save time and costs, and increase productivity. The urgency of improving MSMEs' knowledge and utilization of fintech is high, given the important role of MSMEs in the economy and the potential of fintech in supporting their business growth.

Exploring the effects of E-Banking Products and Services on Conventional Banking Transactions in Nepalese Commercial Banks

This research investigates the growing scenery of E-Banking Products and Services within Nepalese Commercial Banks and their impact on conventional banking transactions. In the context of global financial sector transformations driven by technology, this study seeks to provide insights into the specific implications for Nepal's banking industry.
 To achieve this, the research employs a comprehensive framework, analyzing the range of E-Banking Products and Services currently offered by Nepalese Commercial Banks. It describes e-banking as the ATM banking, Internet banking and Mobile banking and their impacts on conventional banking transactions within Nepalese Commercial Banks. A mixed-methods approach is applied for this research to understand how E-Banking products and services affect conventional banking transactions in Nepalese Commercial Banks.
 Ultimately, the objective of the research is to offer valuable insights into the complex interplay between E-Banking and conventional banking transactions in Nepalese Commercial Banks. By enhancing our understanding of this dynamic background, the study intends to provide practical recommendations and strategies for banks to influence the benefits of E-Banking while mitigating potential drawbacks. This research contributes to the broader discussion on e-banking technology adoption and its implications in emerging economies and banking practices.

The Impact of the Development of Financial Technology on the Banking Industry

With the rapid development of technology, financial technology (FinTech) is increasingly becoming a powerful driving force in the global financial sector. This paper aims to deeply discuss and study the impact of FinTech on the traditional banking industry, as well as the future trends and risks of the integration of the two. Through the method of combining literature review and case analysis, using data comparative analysis, this paper expounds three parts: the overview of FinTech the impact of FinTech on the business model of traditional banks, and the integration and development of fintech and traditional banks. Through analysis and research, this paper finds that FinTech has a continuous, relatively negative and disruptive impact on many aspects of traditional banking business in recent years, and the strategic trend of the future development of the two has a variety of possibilities as well as risks.

Islamic Fintech and Financial Inclusion: Innovations for Sustainable Economic Empowerment

The rapid growth of financial technology (fintech) has had a significant impact on the global financial sector. In the context of Islamic economics, Shariah-compliant fintech can be an innovative tool to promote sustainable financial inclusion. This paper aims to analyze the role of Islamic fintech in improving access to financial services from an Islamic economic perspective. The research methods used include an in-depth literature analysis of the concept of financial inclusion in Islam, an exploration of various existing Islamic fintech services, as well as successful case studies that reflect the implementation of this concept in society. Through this approach, this paper explains how Islamic fintech can provide solutions to financial access challenges in underserved communities. The analysis shows that Islamic fintech can provide access to a wider range of financial services and empower individuals and micro businesses. Concrete examples of services such as Islamic digital payment services and Islamic peer-to-peer lending show a positive impact in supporting financial inclusion and economic growth in various communities. However, the challenges in the form of complex regulations and the public trust that needs to be built should not be overlooked. This paper also analyzes the opportunities and challenges faced by Islamic fintech in creating a sustainable financial inclusion ecosystem that is in line with Shariah principles. In conclusion, the paper underlines the great potential of Islamic fintech as an innovative tool to achieve better financial inclusion in the Islamic economy. Policy recommendations and further implications are also discussed to ensure the sustainable development of Islamic fintech and its wider positive impact.

SUSTAINABLE INVESTMENT STRATEGIES IN PENSION FUND MANAGEMENT: A COMPARATIVE REVIEW OF ESG PRINCIPLES ADOPTION IN THE U.S. AND NIGERIA

The integration of Environmental, Social, and Governance (ESG) principles into pension fund management has garnered significant attention in the global financial sector. This study offers a comprehensive comparative analysis of ESG adoption in pension fund management between the U.S. and Nigeria. Through an in-depth exploration, the research unveils the current state, challenges, and implications of ESG integration in these distinct financial landscapes. The U.S., with its advanced financial markets, has demonstrated a systematic and mature approach to ESG adoption, driven by technological advancements, robust regulatory frameworks, and a shift towards sustainable investment. In contrast, Nigeria, an emerging market, is in the early stages of ESG integration, grappling with challenges such as limited data availability, regulatory intricacies, and the pressing need for ESG education. A pivotal finding of this research is the positive correlation between ESG integration and enhanced financial performance. Pension funds that prioritize ESG principles have showcased resilience in volatile markets, often outpacing their non-ESG counterparts. This underscores ESG's dual role as both a moral and financial imperative. The study further delves into the future outlook of ESG adoption in both nations. While the U.S. is poised for deeper ESG integration, leveraging technological innovations and refined regulations, Nigeria stands at a crossroads, with its trajectory dependent on addressing current challenges and fostering a culture of sustainable investment. In conclusion, the research emphasizes that ESG integration in pension fund management is a profound shift in the financial paradigm, promising a secure, sustainable, and ethically grounded financial future for beneficiaries. The comparative journey of the U.S. and Nigeria offers invaluable insights, setting a benchmark for pension funds globally as they navigate the complexities of sustainable investment in an ever-evolving financial landscape.
 Keywords: ESG Integration, Pension Fund Management, Sustainable Investment, Comparative Analysis.

Ownership Structure, Firm Size and the Operational Risk Management of Domestic Commercial Banks in Sri Lanka

Purpose: The banking sector is a crucial player in any economy, often affected by economic and social crises. Thus, it is vital to identify the intrinsic weaknesses of banks to manage their operational risk. The recent COVID-19 pandemic also severely affects the global financial sector, irrespective of the development status. Accordingly, this study is an attempt to find out the evidence on operational risk management and its relationship with bank size and ownership structure of the banking sector in one of the developing countries in the world, Sri Lanka.Design/Methodology/Approach: Financial data of eight out of thirteen commercial banks in Sri Lanka were analyzed over 13 years using panel data regression analysis. Sri Lankan banks' operational risk management practices are measured by excess capital (over the required minimum capital for operational risk). Deposits plus advances are used to calculate the size of a bank.Findings: It is revealed a significant positive relationship between firm size and operational risk management. A significant relationship between the ownership and excess capital held by banks for managing operational risk is also identified. This result leads to the conclusion that the larger commercial banks hold higher excess capital over the required minimum as per Basel accords. Moreover, government-owned banks are recognized to have more excess capital for operational risk management.Implications: Given the high amount of losses from bad loans and the central bank's implementation of Basel III regulations, the study has implications for Sri Lankan banks.Originality: When considering Sri Lankan context there can be found only a little amount of evidence on operational risk management practices and its relationship with size and ownership.

RIBA DALAM PANDANGAN AL-QUR’AN DAN HADIST

Riba, as the practice of adding or taking additional money in money lending transactions, is an important concern in Islamic law. In the Al-Qur'an and Hadith, usury is expressly prohibited and is considered a major sin that must be avoided by Muslims. The background to this problem involves historical aspects, where the practice of usury became a concern at the time of the Prophet Muhammad SAW and required decisive action. The practice of usury violates the principles of justice and can reinforce social inequalities and economic imbalances. In the era of the modern financial system, the practice of usury also affects the global financial sector, presenting a dilemma for Muslims who want to implement Islamic economic principles. Therefore, a deep understanding of the views of the Qur'an and Hadith regarding usury is important in developing an economic system that is just and in accordance with Islamic teachings. This study aims to analyze the prohibition of usury in the Qur'an and Hadith and its implications in the context of Islamic economics. Through a detailed analysis of relevant verses of the Qur'an and hadiths, a deep understanding of the concept of usury, its impact on society, and applicable Islamic economic alternatives is presented. Thus, this research provides a better understanding of usury in the view of the Qur'an and Hadith, so that it can encourage critical thinking and concrete solutions in carrying out economic activities in accordance with Islamic teachings.Keywords : Riba, Al-quran, Hadits.

Insurance Premium and The Growth of Nigeria Economy (2007-2021)

The insurance industry's growing share of the global financial sector in both developed and developing countries has moved focus to the insurance-growth relationship. As a result, the study looked at the effect of insurance on Nigerian economic growth from 2007 to 2021. The study's goals were to look at the impact of life, and total insurance premiums on the growth of the Nigerian economy after the insurance regulations and reforms were implemented in 2006. Ex-post facto analytical research design was adopted in this work. The National Bureau of Statistics and the Central Bank Statistical Bulletin provided secondary data. The logarithm was used to alter the data. Ordinary Least Square regression technique was used to analyze the data. According to the findings, non-life gross premium has a considerable positive influence on real GDP, life gross premium has no significant effect on real GDP, and there is a significant positive association between total insurance gross premium and economic growth in Nigeria. Based on the findings, the general conclusion is that insurance and economic growth in Nigeria have a considerable positive association. The study recommends that the National Insurance Commission should adopt policies that promote the growth and development of the insurance industry as a whole. Individuals and families should be educated on the importance of life insurance in order for it to have a substantial impact on Nigeria's economic growth.

Neo Banks: A Paradigm Shift in Banking

Purpose: In terms of market structure and competitiveness, Indian banking has seen major changes. The future of banking services is being revolutionised by technical and digital advancements. Technology advancements are anticipated to have a significant impact on the global financial sector in the near future. Innovations in payments, lending, asset management, and insurance put financial institutions' business models and strategies to the challenge, but they also offer opportunities to both newcomers and existing market players. Fintech is a term used to characterise emerging technological advancements in the financial services sector due to an increased reliance on information technology. The concept of new- generation banking is resonating with traditional banks' increased use of technology through in-house upgrades or partnerships with fintechs. This in turn is driving the banking sector toward new business models, innovative products, and services. Clients nowadays, particularly retail customers, want banks to offer them efficient, dependable, and customised services. Therefore, there is a need to offer financial services that are both affordable and accessible to everyone. Narrow banks. One such cutting-edge strategy used by fintech companies is neo banking. Neo banking is a financial industry buzzword that is revolutionising India's Fintech industry. Neo banks, which have been widely successful, are now expanding into India and giving users access to financial services with just a mouse click. Neo banks can offer banking services and products online through partnerships with traditional banks despite not having a physical presence. Neo banks provide cutting-edge banking options to their clients, particularly the tech-savvy generation and the underbanked citizens of our nation. Therefore, this research paper aims to introduce this concept of neo banking to a wider range of consumers and attempts to make a study on Neo bank in its present and future by analyzing its pros and cons through SWOC and ABCD Framework Analysis. Design/Methodology/Approach: Research gap is identified after a literature search on Neo banks. Since this concept is in its inception in India, there is a lot of scope for research. Secondary data is analysed to understand the concept of neo banks and SWOC and ABCD framework analysis is conducted on Neo banks. Findings/ Results: This research article explores the new paradigm shift in providing financial services to individuals and businesses. Since Neo banks are in its inception stage, this paper attempts to understand the advantages, challenges, and benefits of Neo banking through ABCD and SWOC analysis. In addition, the paper also focuses on 5 prominent neo banks in India and the growth and future for Neo banking in India. Type of Article: Review-based exploratory study.

ОСОБЛИВОСТІ ВПЛИВУ ШТУЧНОГО ІНТЕЛЕКТУ НА БАНКІВСЬКИЙ СЕГМЕНТ ФІНАНСОВОГО РИНКУ УКРАЇНИ

Over the past couple of years, the global economy and financial sector have been increasingly affected by the development of digital technologies. Access to technology, advanced analytics, data and an innovative culture have given FinTech companies advantages that they have used to transform the banking ecosystem. It is these elements that have made it possible to influence access to financial services, payments, infrastructure, distribution and components of the safety and soundness of the banking sector. In today's conditions, artificial intelligence is one of the most important elements that affect the process of digitalization of the economy. With the help of artificial intelligence technologies, the subjects of the banking services market are able to reduce costs and gain remote access to consumers. Innovations related to the use of artificial intelligence enable the transformation of traditional automated remote banking customer service systems into a new technological and informational dimension, resulting in the formation of digital banking. The article examines the impact of artificial intelligence (AI) on the banking sector of Ukraine. The scope of the use of AI technologies in the banking sector, the types and methods of their application are considered. The article analyzes the use of AI in various aspects of the banking sector, including process automation, digitalization of banking services and improved customer service. Among the well-known areas of application of artificial intelligence in the banking sector are chatbots for customer support, risk assessment and credit scoring systems. However, it is emphasized that personalized services have also gained popularity in recent times, as building quality relationships with customers requires not only meeting their current requests, but also anticipating their needs at every stage of the customer journey. As practice shows, personalized sales have a higher conversion rate than selling an accessible assortment of goods for everyone, and this is where artificial intelligence can be applied. The trends in the development of the AI industry in Ukraine and the positive factors of the introduction of new financial services and products on the financial market of Ukraine are also indicated.

COVID-19, clean energy stock market, interest rate, oil prices, volatility index, geopolitical risk nexus: evidence from quantile regression

PurposeThe outbreak and the spreading of the COVID-19 pandemic have impacted the global financial sector, including the alternative clean and renewable energy sector. This paper aims to assess the impact of the pandemic, COVID-19 on the stock market indices of the clean energy sector using quantile regression methods.Design/methodology/approachThis study utilized daily data sets on the four major categories of stocks: (1) Morgan Stanley Capital International Global Alternative Energy Index, (2) WilderHill Clean Energy Index, (3) Renewable Energy Industrial Index (RENIXX) and (4) the S&P 500 Global Clean Index. The study adopts a multifactor capital asset pricing model.FindingsClean and alternative energy stocks are powerful instruments for diversification. However, the impact of the volatility index induced by infectious disease is negative and significant across quantiles.Practical implicationsFor investors and policymakers, considering how the uncertainty caused by COVID-19 and the geopolitical index influences renewable energy markets is of great practical importance. For investors, it throws insights into portfolio diversification. For policy makers, it helps to devise strategies to reboot the economy along the lines of the deployment of renewables. This study sheds light on a global green-energy transition and has practical implications for renewable energy resilience in post-pandemic times.Originality/valueThis paper can be considered as a pioneer that explores the nexus between oil prices, interest rates, volatility index, and geopolitical risk upon the stock indices of clean and alternative sources of (renewable) energy in the COVID-19 pandemic situation. The results have important insights into the area of energy and policy decision-making. Additionally, the paper's novelty lies in using the explanatory variables associated with the Covid 19 pandemic.

Competitive strategies for ensuring Fintech platform performance: Evidence from multiple case studies

AbstractThe emergence of Fintech platforms has revolutionized the way financial services are provided. And yet, in spite of their growing prominence in the global financial sector, there remains a lack of understanding of the competitive strategies that are appropriate for these platform‐based businesses, and the implications of those strategies for their performance. Examining four case studies of some of the most successful Fintech platforms in China from the theoretical perspective of the core logics of strategy, we develop a theoretical framework that suggests that the nature of the competitive strategies deployed by a Fintech platform should be contingent on (1) the extent to which their services can be differentiated, as well as (2) the tangibility and physical presence of the platform’s service offerings. More specifically, our framework presents four different combinations of competitive strategies that Fintech platforms can adopt contingent on the nature of their services along these two dimensions. In addition, beyond the two dimensions, our framework suggests that all Fintech platforms should be underpinned by a common strategic core consisting of strategies that align the platform with social pressures. These pressures include those exerted by the government, the market, and society in general. With its findings, it is hoped that our study will provide specific guidance for Fintech practitioners on the appropriate competitive strategies to adopt in order to set their platforms on the path of commercial success.

Revisiting the Current Status of Green Finance and Sustainable Finance Disbursement: A Policy Insights

The paradigm of green finance is currently in the developmental stage in Bangladesh; however, it has drawn enormous interest in the global financial sector. Recently, researchers, academics, policymakers, and both the supply-side and demand-side of these funds are more serious in Green Finance and Sustainable Finance than ever before. In creating a greener economy, market players need to focus on sustainable development. All banks and NBFIs have to disburse the funded loan greater than or equal to 5% in green finance and 20% in sustainable finance according to BB policy guidelines. This paper examines the recent target accomplishment scenario of green finance and sustainable finance through banks and NBFIs in Bangladesh for the year of 2021 (four quarters). This study also observes the highest and lowest contributors in both schemes and is descriptive in nature. Data has been collected from secondary sources. According to the findings of this study, Bangladesh’s central bank has made significant accomplishments in the effort to green the country’s financial system by implementing several green policies and regulatory measures. This study also indicates the total target achievements of banks and NBFIs were 3.16% of 5% in the green finance of total loan disbursement and 9.32% of 20% in sustainable finance, which is still far behind the SDGs’ goal that must be achieved by 2030. The intention of this research is to encourage the supply and demand sides of the fund and to capitalize more on future research directions. Independent experts in this field are needed to confirm the findings of any further research.

ВЛИЯНИЕ ГЛОБАЛЬНОГО ФОНДОВОГО РЫНКА НА РОССИЙСКИЙ ФИНАНСОВЫЙ СЕКТОР ДО И ВО ВРЕМЯ ПАНДЕМИИ

Тhe statistical dependencies of the RTS stock indicators and the financial sector of the Russian stock market on the dynamics of the global financial stock market sector are studied. The experimental calculations were carried out and the main factors influencing the dynamics of this market in 2006–2019 (before the pandemic) and in 2020–2021 (during the pandemic) were identified. Calculations were carried out both on the dynamics of the RTS index and on the stock quotes of the largest banks as PJSC Sberbank and VTB Bank. It was shown that the COVID-19 pandemic did not have a significant qualitative impact on the closeness of the statistical relationship between the dynamics of these indicators and the indicator of the financial sector of the global stock market, since the coefficients of determination of the statistical relationship remained high.

Book Review: Dealing in Desires

This is a review of Kimberly Kay Hoang’s (2015) Dealing in Desire. Her ethnographic study observes four different bars in Ho Chi Minh City, Vietnam: 1) Kong Sao Bar, 2) Naught Girls, 3) Secrets, and 4) Lavender. Hoang traces different representations of the global financial sector after the 2008 financial crisis and explores the relationship between Asian ascendancy and Western decline. From the local to the international, interactions with clients and hostesses in the bars of Ho Chi Minh City demonstrate a new global trend: the rise in transactions occurring among a global financial sector undefined by traditional social structures (e.g., commercial or national banks). By moving from observer to participant, Hoang develops a deeper understanding of the capital and labour practices that these men and women engage in, highlighting how their everyday experiences demonstrate that nightlife in the city is a way for locals to move up the socio-economic ladder.

On the regulation of the intersection between religion and the provision of financial services: Conversations with market actors within the global Islamic financial services sector

Islamic finance finds itself in a unique position given its robust performance over the recent financial crisis suggesting its resilience as a financial system to exogenous shocks. Existing studies attribute this strong performance to its institutional and systemic regulatory framework, however, much of the extant literature is descriptive and lacks a holistic consideration for Islamic financial regulation. Our study differs from the extant literature by approaching this area of study as a nexus of institutional and systemic regulatory factors thus providing a richer view of Islamic financial regulation. We generate this richer understanding through discourse with market actors on these stylized debates thus allowing us to gain further insight to delineate and disentangle key concepts thus providing a more integrated framework of Islamic financial regulation. Our findings extend the academic literature in indicating that issues of institutional governance are nested within broader systemic regulation, that the need for regulatory harmonization persists, and that there are continual calls for the creation of a central monetary authority for the global Islamic financial sector. Our results enhance the extent of understanding of the focuses on developing sustainable regulation within the Islamic financial system.

14-The Role of Islamic Banking Industry in The Perspective of Global Financial Sector and its Impact in Pakistan's Economic Growth

The Islamic financial industry is flourishing at a fast speed in Pakistan. It right now possesses a portion of over 8% of the nation's complete financial area. As Islamic Republic of Pakistan is a creating financial system, every area should add up to its monetary growth. The monetary area additionally adds to Pakistan's monetary development, which incorporates customary banking area and Islamic banks. At constant, there are five full obligation of Islamic terminology banks working in Pakistan, alongside other regular banks that give Islamic financial administrations. This review expects to look at the job of the Islamic financial area in Pakistan's monetary development. For this reason, the monetary information of the 5 Islamic banks were taken from their fiscal summaries from the second from last quarter of 2006 to the final quarter of 2011 and the country's genuine GDP information from the wellspring of the State Bank of Pakistan. Different factual apparatuses have been utilized to inspect the effect and job of the Islamic financial area on the country's monetary development. though the monetary execution of the Islamic financial area decidedly affects financial growth, as Islamic lending attractions in greatest of finance clients because of faith; while the benefit of the Islamic pecuniary area has following to no effect in bright of the fact that Islamic Al banks are new to the realm and experience issues creating a gain for their buyers, as in Sharia law. that the resource nature of Islamic banks agrees with the resource nature of conventional banks and autonomously affects Pakistan's monetary development. The general outcomes show that if there should be an occurrence of minor changes in the economic design of the Islamic monetary industry and by expanding the monetary productivity of this industry, it can imagine a substantial part in the monetary development of Pakistan.