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Item A Comparative Performance Analysis of Islamic & Conventional Banking(UMT.Lahore, 2017) Altaf AhmadThe assessment of financial performance of banks is of particular importance in all societies and economic systems, given the scarcity of economic and financial resources compared to the large needs. Banks face a peculiar situation where most of the financial resources are borrowed from the depositors or shareholders. Therefore, one of the most important challenges facing bank managers is how to efficiently use the financial resources available to them. Financial indicators are the most common analytical tools used to assess the overall and partial performance of all organizations. The objective of this research is to critically evaluate the performance indicators which are used in previous studies and propose a comprehensive indicator to check the performance of selected Islamic and Conventional banks of Pakistan over the period of 2011-2016. The comprehensive indicator of performance is comprised of indicator of profitability, customer satisfaction and cost & revenue efficiency. The efficiencies are measured by using Stochastic Frontier Analysis, while overall indicator has been constructed by using Principle Factor Analysis. This study provides ranking of selected banks based on the new performance indicator and insights to the possible determinants in conventional and Islamic banking system. This study then compares the determinants of performance such as Bank size, Operating efficiency, Management efficiency, Employee efficiency, and Funding cost between conventional and Islamic banks which are comparable in size. To compare the determinants of performance, regression analysis is applied. Feasible Generalized Least Square (FGLS) approach is later used to estimate the determinants of performance. Findings show that Meezan bank is ranked at the top in revenue efficiency and Askari bank ranks first in cost efficiency. In overall performance comparison, Meezan bank is at the highest position. This study identifies Operating efficiency, Management efficiency, Employee efficiency, and Funding cost as important determinants of the performance of Pakistani banking sector.Item Legitimacy of Bai’a Al Urboon; an Investigational study(UMT.Lahore, 2017) Aziz Ur RehmanA Professor at Cambridge University London argued if the Islamic Banking system is truly Shari’ah Compliant then what is the Shari’ah justification for the Urboon (the Earnest money) in case if the buyer is unable to complete the deal? This was a moment which inspired the researcher to answer the question.Through this study, theresearcher conductedan in-depth research and concluded that some Fatawa and Shari’ah edicts are famous and people are following it but in fact there is no base for that. Bai’a Al Urboon is one such practice that accepted as the normal but without any firm grounding in the Islamic Financial System.In fact, some Shari’ah Scholars taking the advantages of thumping and exceptional Fatwa and using it as a common ruling. The researcher studied and researched books, articles, papers, etc. searching for a concrete basis for “Legitimacy of Bai’a Al Urboon” based on the principles of Fiqh and Shari’ah. This is a qualitative research collecting of the opinion of four school of Fiqh and highlighting the correct Shari’ah edict and rulings. Researching and reading through books, papers, articles and other supporting material provided an exceptional opportunity to learn the fundamental underlying principles of the Islamic financial system. It created an excellent niche for the development of a fast-growing industry. This research hopes to align further align our financial system with the core Islamic financial guidelines. The importance of this research lies in the need to protect the Islamic Finance industry and its clients from being in doubts and guilty in future. Malaysia started financing based on Bai’a Al Einah and after 20 years they announced that it is Haram. They cannot justify and satisfy their clients who invested and received profits in this 20 years. Dubai Islamic bank started Bai’a Al Salam based financing and after years they stopped it reasoning that this is Haram. Dana Gas issued Sukuk and after 2 years it was announced that such Sukuk are not a Shari’ah Compliant Sukuk. National Bonds Corporation facing objections on their Prospectus and on process on Sukuk Murabaha. Why the industry experts have been forced to argue and justify the wrong practices with weak quotes. The researcher tried his best to protect the industry and highlight the weak basis of Bai’a Al Urboon.Item DETERMINANTS OF FINANCIAL PERFORMANCE OF TAKAFUL AND INSURANCE COMPANIES; EVIDENCE FROM PAKISTAN(UMT.Lahore, 2017) ZOYA TANVEERResearch Purpose: The main aim of this research study is to determine the financial fundamental ratios that may influence on the financial performance of the KSE - 100 index listed insurance and takaful companies. The research study determines the important selected financial variables that an investor / decision maker considers to be impact significantly on the insurer’s financial performance.Item PERFORMANCE ANALYSIS OF ISLAMIC AND CONVENTIONAL BANKS IN PAKISTAN USING CAMEL FRAMEWORK(UMT.Lahore, 2017) HIRA MEHMOOD BUTTEconomic condition of any country is somehow wholly or solely depends on soundness and accuracy of banking system therefore; its importance in current economic situation cannot be denied. Banking sector is basically works to give fuel to engine the progress of an economy. Therefore any kind of disruption or problem to banking sector would definitely shows a drastic affect on the economic growth of any country. Process of performance evaluation is necessary for the betterment of financial growth. Keeping in mind the importance of performance evaluation process current research study is based on comparative analysis of performance of two major banking sectors of Pakistan (Islamic and conventional sector) using the CAMEL framework. A sample of 4 Islamic banks and 16 conventional banks is used for conducting the study for the period of 2005 to 2015.Item FACTORS AFFECTING THE GROWTH OF ISLAMIC MICROFINANCE INSTITUTIONS IN PAKISTAN(UMT.Lahore, 2017-05) SHAHID SAFDARPakistan is an under develop economy having a population of about 200 million. It is the six most populous country of the world with high level of poverty. The Government and social sector organizations are using many tools to alleviate poverty. However, despite many attempts have been done for the basic necessities of human, it is still growing in Pakistan rapidly. Micro Finance considered being the globally accepted as an important tool to alleviate poverty. Pakistan officially declared Islamic Republic of Pakistan has great potential of Islamic micro financing. This research study aimed to study and identify the factors that impact on the growth of Islamic microfinance sector in Pakistan. A questionnaire is employed to achieve the research objectives of the study. The data is collected from 60 high ranked individuals having number of years‟ experience in the Islamic micro finance industry of Pakistan. One sample t-test and regression model is applied to examine the determinants of Islamic micro financing sector growth in Pakistan. The findings of the study revealed that structural issues of Islamic micro finance institutions, availability of Shariah complaint funds, availability of Islamic micro finance products, non-entrepreneurial approach of community, lack of regulatory and policy framework are the main problem areas hampering the growth of IMFIs in Pakistan.Item ISLAMIC BANKER’S PERCEPTION REGARDING REGULATORY CHALLENGES OF ISLAMIC BANKING IN PAKISTAN(UMT.Lahore, 2017-05) Rozeen ShaukatThis current study seeks to investigate the regulatory challenges of Islamic banking in Pakistan. The research aimed to examine whether or not regulatory challenges was present among the practitioners of Islamic banking in Pakistan, and if so which dimensions contributed towards regulatory challenges. This study research design was quantitative in nature and survey method was used.Item Issues of Bai Tawarruq in Islamic Banks of Pakistan(UMT.Lahore, 2017) Atiq ul haqThe evolution of Islamic banking and finance has tremendously influenced the economy world-wide, especially in Islamic countries. In recent decades, Islamic banking has become a major competitor of conventional banking system. Conventional banking users are increasing day by day due to its Sharia compliant principles and Islamic banking diversified range of products. Tawarruq is one of the Islamic banking products which is commonly used in Islamic banks. This research has focused on the fiqh perspectives of Tawarruq and its implementation issues in Islamic banking system.In this research,initially we have done the empirical study consideringsecondary data as qualitative methods. In the result, we analyzed that the research is based on different views of the followers and challengerstowards the legality of Tawarruq in Islamic fiqh. The basic condition of valid sale is considered better than that the other aspects,and it has beenreviewed by scholars of the field for valid sale according to sharia compliant. Due to that the legality of Tawarruq, it has been discussed by sharia scholars. There are some rules and resolutions in Islamic countries forthe legality of Tawarruq. In actual practice, Tawarruq is used as a commodity Tawarruq in Malaysia andin Middle East countries, it deals with commodity transaction through Tawarruq principle. Based on the comparative study and literature results, we explored that Tawarruq is permissible with certain conditionif it is strictly followed according to Sharia compliant, otherwise Tawarruq is not allowed.