Determinants of Low Adoption of Islamic Banking in Pakistan

Authors

  • Mir Hassan Junejo Research Fellow, Institute of Business Administration, University of Sindh Jamshoro, Jamshoro, Sindh, Pakistan
  • Nusrat Shah Research Fellow, Institute of Business Administration Shaheed Benazir Bhutto University, Nawabshah, Sindh, Pakistan

DOI:

https://doi.org/10.35484/ahss.2023(4-III)35

Keywords:

Islamic Banking, Sharjah-Compliant Financial Institutions, Musharika, Mudariba, Murabaha, Ijara, Consumers Intention, Perceived Risk

Abstract

This paper identifies the main factors that influence the intention to adopt Islamic banking in Pakistan. The primary data presented in the paper is collected through an online survey and personal interviews using questionnaire involving a sample of 201 respondents located in Islamabad, Karachi, Lahore and Sukkur and other cities of Pakistan. The results revealed that bank reputation, compatibility, awareness and service quality positively influence the customers’ intention to adopt Islamic banking whereas perceived risk negatively influences the adoption of Islamic banking services in Pakistan. By identifying the main drivers and inhibitors of Islamic banking adoption this research aims to help the managers to target their strategies and actions more efficiently and effectively. No such study has been already conducted in Pakistan regarding customer’s intention to adopt Islamic banking. Therefore, this study will add to the literature of Islamic banking specifically for Pakistan.

Vol. 4 No. 3 (2023): July to September

Downloads

Published

2023-09-30

Details

    Abstract Views: 62
    PDF Downloads: 63

How to Cite

Junejo, M. H., & Shah, N. (2023). Determinants of Low Adoption of Islamic Banking in Pakistan. Annals of Human and Social Sciences, 4(3), 382–392. https://doi.org/10.35484/ahss.2023(4-III)35

Issue

Vol. 4 No. 3 (2023): July to September

Section

Articles

License

Copyright (c) 2023 Annals of Human and Social Sciences

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Open Access

RESEARCH OF SOCIAL SCIENCES (SMC-PRIVATE) LIMITED(ROSS) & Annals of Human and Social Sciences (AHSS) adheres to Creative Commons Attribution-Non Commercial 4.0 International License. The authors submitting and publishing in AHSS agree to the copyright policy under creative common license 4.0 (Attribution-Non Commercial 4.0 International license). Under this license, the authors published in AHSS retain the copyright including publishing rights of their scholarly work and agree to let others remix, tweak, and build upon their work non-commercially. All other authors using the content of AHSS are required to cite author(s) and publisher in their work. Therefore, RESEARCH OF SOCIAL SCIENCES (SMC-PRIVATE) LIMITED(ROSS) & Annals of Human and Social Sciences (AHSS) follow an Open Access Policy for copyright and licensing.

Creative Commons License 

Signatory of DORA