Growth of Islamic banking in Pakistan

Our founder Quaid –e-Azam was very much interested in the Islamic banking in our country .The prime objective of state bank is to remove interest system from the Pakistan. In ۱۹۷۰ s Islamic banking was not famous, but at the start of twenty century it is very common in all over the world. Islamic banking is account value approximately USD ۵۰۰ billion. It is growing with the ratio of ۱۱-۱۵%.Islamic banking is flourishing dynamically in also Pakistan like other countries, since January, ۱۹۸۱ it is very famous in Pakistan. All over the world financial stability has a crucial role. From the last ۳۰ years Islamic banking has scope in the world. At this time, there are almost ۲۰۰ Islamic banks which are providing the Shariah compliant. We analyzed the strength of Islamic banks with the help of AID model. Our results have shown that Islamic banking is the milestone for the future Islamic banking. In this paper, we have taken GIB as the dependent variable and SC, IV, DV, ROA as the dependent variables. It has proved that there is positive association between them. Islamic banking is growing in the world at very fast pace. In the near future it will reach till ۱۳۰۰ billion. Persentably, across the ۱۲۰۰ Islamic banking are providing their services. In Pakistan, there is solid platform related to Islamic banking in Pakistan. In ۲۰۰۰ state bank was introduced the first Islamic bank.Our founder Quaid –e-Azam was very much interested in the Islamic banking in our country .The prime objective of state bank is to remove interest system from the Pakistan. In ۱۹۷۰ s Islamic banking was not famous, but at the start of twenty century it is very common in all over the world. Islamic banking is account value approximately USD ۵۰۰ billion. It is growing with the ratio of ۱۱-۱۵%.Islamic banking is flourishing dynamically in also Pakistan like other countries, since January, ۱۹۸۱ it is very famous in Pakistan. All over the world financial stability has a crucial role. From the last ۳۰ years Islamic banking has scope in the world. At this time, there are almost ۲۰۰ Islamic banks which are providing the Shariah compliant. We analyzed the strength of Islamic banks with the help of AID model. Our results have shown that Islamic banking is the milestone for the future Islamic banking. In this paper, we have taken GIB as the dependent variable and SC, IV, DV, ROA as the dependent variables. It has proved that there is positive association between them. Islamic banking is growing in the world at very fast pace. In the near future it will reach till ۱۳۰۰ billion. Persentably, across the ۱۲۰۰ Islamic banking are providing their services. In Pakistan, there is solid platform related to Islamic banking in Pakistan. In ۲۰۰۰ state bank was introduced the first Islamic bank.

Keywords:

Conventional banks , Shariah complaint , State bank , Financial stability , AID model