Conventional Banking vs. Islamic Banking Essay

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Islamic Vs Conventional Banks in Pakistan (A case study of Bahawalpur) Muhammad Azhar Sheikh1 Usman Taseen2, Syed Ameer Haider3, Muhammad Naeem4 Abstract: This study examines the satisfactory level of the customers of Islamic banks and conventional banks in Pakistan means which bank’s customers are more satisfied by the facilities provided by the both banks. In this study, it is found that economic benefits, financial position of banks, latest facilities, and interest on deposits, strong global image and reputation are the factors that are motivating customers towards conventional banks. Interest free loan, financial position of bank, Islamic teaching and Shariah, knowledge of Islam and religious environment are the factors that are motivating customers towards Islamic Banks. Findings showed that the customers of the both banks are satisfied with the facilities that are provided by the both banks but customers of conventional banks are more satisfied than the customers of Islamic banks. SPSS 13.0 is used for data analysis. Keywords: Islamic Banking, Conventional Banking, Motivational Factors, Customer’s Satisfactions, Bahawalpur Introduction In the current global environment the banks are performing multiple functions to provide a variety of products and services and providing the latest facilities to their customers. In Pakistan, islamic banks and conventional banks are facilitating their customers. Due to unstable policies and uncertainty, Pakistani banking sector has experienced very unstable environment since 1950. In 1974 Pakistani banking sector dominated, nationalized bank showed very poor performance due to inferior products and services that resulted into the privatization of banking sector in 1992. In 2002 Meezan islamic bank was registered as first full fledge islamic bank by the state of Pakistan. In Pakistani banking sector islamic banks are new

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