Open AccessFactors Influencing Adoption of Islamic Banking: A Study from Pakistan
Author(s) -
Nain Tara,
Madiha Irshad,
Muhammad Rizwan Khan,
Mahwish Yamin,
Muhammad Rizwan
Publication year - 2014
Publication title -
journal of public administration and governance
Language(s) - English
Resource type - Journals
ISSN - 2161-7104
DOI - 10.5296/jpag.v4i3.6677
Subject(s) - islam , business , reputation , restructuring , islamic banking , metropolitan area , perception , marketing , certificate , market share , accounting , finance , political science , law , medicine , philosophy , theology , pathology , algorithm , neuroscience , computer science , biology
Islamic banking system was initiated in Pakistan nearly three decades back in 1980 by SBP, through restructuring banking rules and ordinance i.e., it imposed alterations in operations of conventional banks. The first full-fledge Islamic Bank was granted incorporation certificate in 2001. However, the Islamic banking (IB) still seemed to have comparatively low market share. Therefore, the main objective of this study is to scrutinize the awareness, religious perception, and preferences in terms of reputation and networking on IB, of Pakistani community. Hence, a survey was conducted based on 150 respondents, representing Muslim community from metropolitan as well as rural areas, all over the country. Results revealed that there is a significant perceived adoption criteria regarding Islamic Banking. Criteria include factors of importance, starting from the most significant, Awareness regarding financial teachings of Islam, Reputation, Networking and Religion. Thus, the results would be worthwhile for the Islamic banking sector in comprehending the customer perception and preferences regarding IB, and to stimulate it strategically, and for the concerned authorities, in promoting specific regulations and policies that complement the market share of IB.