Abstract:
This study examines the comparison between Islamic banks
and conventional banks in Pakistan. In this study the key
determinants that affect their profitability are discussed
and categorized as financial factors and non-financial
factors. This study is important due to an emerging trend
of Islamic banking practices in Pakistan in the existence
of conventional banking system. For this purpose we have
selected 5 banks. The financial factors include the ratio
analysis and the credit rating and the risk faced by the
banks, whereas the non-financial includes the customer
satisfactions and employee satisfaction, competition and
for this purpose questionnaire, informal interviews being
conducted. The results reflect that there is strong
positive relationship between service quality and customer
satisfaction in case of Islamic banks as well as in case of
conventional banks. On basis of these findings several
recommendations have being given.
