Comparison of Islamic and Conventional Banking
A Case Study of Private Banks of Pakistan
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To discover out the comparison of Islamic and conventional banking in Pakistan because economic growth is a vital condition for economic development; investment is an essential factor for economic growth. Thus a financial system, especially banking, which provides credit to investors, plays an important role in financing economic development. Hence it can be said that the financial sector plays a growth promoting role if it is able to direct financial resources towards the sectors that demand those most. More financial resources can be owed into productive use and more physical capital being f...
To discover out the comparison of Islamic and conventional banking in Pakistan because economic growth is a vital condition for economic development; investment is an essential factor for economic growth. Thus a financial system, especially banking, which provides credit to investors, plays an important role in financing economic development. Hence it can be said that the financial sector plays a growth promoting role if it is able to direct financial resources towards the sectors that demand those most. More financial resources can be owed into productive use and more physical capital being formed which can contribute completely to economic growth if the financial sector is more developed. Nowadays it was a leading challenge for Muslims to change their financial institutions to bring them in agreement with the dictate of Shari'ah. In an environment where the whole financial system was based on interest, it was a difficult task to compose the financial institutions on an interestfree basis.
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