An Empirical Analysis of Banking Sector in Pakistan: Islamic versus Conventional Banks

International Journal of Islamic Economics and Finance Studies, 03 (01), 61-93, 2017

Posted: 14 Mar 2017

See all articles by Muhammad Mahmood Shah Khan

Muhammad Mahmood Shah Khan

University of Management and Technology (UMT), Pakistan

Bushra Shafiq

University of Management and Technology

Farrukh Ijaz

University of Management and Technology

Date Written: March 9, 2017

Abstract

Purpose – The purpose of this study is to determine the impact of service quality being provided by the Islamic and Conventional banks on customer’s judgments towards their satisfaction level on different parameters of Islamic banks in the region of Lahore, Pakistan.

Design/Methodology/Approach – A questionnaire was formulated to obtained data from the 300 respondents using a convenience sampling technique. T-tests, correlation, ANOVA and regression analysis used to test the extent of the relationship among service quality (SQL) and customer satisfaction (CS) for the both banking sectors of Pakistan.

Findings – The consequences depicts that there is a strong positive association among SQL and CS in the banking segment. Further results illustrate that the extent of affiliation among SQL and CS is larger in Islamic banks as contrasted to conventional banks.

Originality/Value/Implications – In Pakistan, there are fewer studies that raised the issue of SQL and CS in Islamic and Conventional banks within in a single study. Also, as Islamic banking is a new phenomenon which is getting an increasing market share in terms of market size and deposits, so this comparison is also of great importance. This study has a number of inferences for bankers, policy makers and academicians.

Keywords: Banking, Service Quality, Customer Satisfaction

JEL Classification: G21, L25, C42

Suggested Citation

Khan, Muhammad Mahmood Shah and Shafiq, Bushra and Ijaz, Farrukh, An Empirical Analysis of Banking Sector in Pakistan: Islamic versus Conventional Banks (March 9, 2017). International Journal of Islamic Economics and Finance Studies, 03 (01), 61-93, 2017, Available at SSRN: https://ssrn.com/abstract=2930470

Muhammad Mahmood Shah Khan

University of Management and Technology (UMT), Pakistan ( email )

C-II
Lahore, Punjab 54770
Pakistan

Bushra Shafiq

University of Management and Technology ( email )

Johar Town - Phase 1
Lahore, Punjab 54770
Pakistan

Farrukh Ijaz (Contact Author)

University of Management and Technology ( email )

C-II
Lahore, Punjab 54770
Pakistan

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
528
PlumX Metrics