Impact Of Islamic Banking

Name: Qasim Pervaiz

Roll No: 19

Registration No: 1JW00000A31003T9

Name: Ahmed Abdullah

Roll No: 04

Registration No: 1JW000009Q1003SW

Name: Muhammad Wasif

Roll No: 03

Registration No: 1JW000009P1003SV

Research Topic:

Project title: Does Islamic Products Effect Market Offerings of already existing conventional Banking

Objective: Being a Muslim and follower of Islam it the need of hour to strive for the introduce the Islamic banking product in society.

ABSTRACT

The reason for this study is to check the impact of diverse variables on conduct of people towards Islamic products in Pakistan. This paper was outline watch that on what premise people moves toward an Islamic bank and what they anticipate

Islamic banking has experienced global growth rates of 10-15 percent per annum, and has been moving into an increasing number of conventional financial systems at such a rapid pace that Islamic financial institutions are present today in over 51 countries. Despite this consistent growth, many finance practitioners remain unfamiliar with the process by which Islamic banks are introduced into a conventional system.

Islamic banking is interest free banking that restricts Riba, and Gharar(speculative income) and those activities which involve no risk and only fix profit on investment in case of profit and loss in both conditions. Islamic bank considered an ethical way of banking from the customer and Islamic point of view. the majority of Islamic bank customers are well educated; approximately 80 percent are between 25‐50 years of age; more than 50 percent of the surveyed customers have maintained their current banking Account relationship with Islamic banks customers’ awareness and usage rates are quite high for savings accounts, current accounts, investment accounts and automated teller machines; customers were found to be most satisfied with the products interest free

As our religion is Islam most of the people did not have sufficient knowledge of Islamic banking products, 90% people are interested in Islamic banking but the current does not have the system of Islamic banking.

The results shows that people don’t know that ley concept of Islamic banking they consider it as conventional banking.

Most of the customer satisfied from Islamic banking but they consider it as a complex way of banking. They likely to take the return on investment either it are in case of interest or profit. The comparison between Islamic and conventional banking consider at very low level due to many reasons like time, knowledge, personal attention etc.

The customers already dealing with Islamic banks have still confusion in their mind about the Islamic Products and Islamic banking system in Pakistan because banks not providing them proper information and guidelines to choose the Islamic way of banking.

One key difference is that conventional banks earn their money by charging interest and fees for services, whereas Islamic banks earn their money by profit and loss sharing, trading, leasing, charging fees for services rendered, and using other sharia contracts of exchange.