Growth of Islamic Banking in Pakistan: A Comparative Study

Abstract

The study focused on the growth of Islamic banking in Pakistan in terms of its Deposits, Investments, Assets and Owners Equity for the period from 2004 to 2009. The horizontal analysis technique was used to determine the growth rates of Islamic and conventional banks while t-test was used for statistical significance. The growth rate of Islamic banking was higher than its traditional counterpart in Deposits, Investments, Assets and Owners Equity. The growth rates of deposits and Assets of Islamic bank were statistically significant, whereas growth rates in investments and Owners equity were found statistically insignificant.

Keywords: Islamic Banking; Growth Rates; Deposits, Investments; Assets; Owners Equity