Perceptions And Acceptance Of Islamic Banking in Pakistan

The paper adds to the body of knowledge in the behavioral study by the geographical context of Pakistan. Using data from the Pakistani university academicians and student’s survey questionnaire, the behavior of individuals towards Islamic banking was examined. Initially, demographic characteristics together with the perceived attributes and behavioral intention of Islamic banks versus commercial banks were determined. The findings suggest that culture and services quality factors stand out as being the significant compared with many other factors based on personal beliefs. The evidence generated in the study did not find an important consideration of the specific income group in increasing the utilization of services provided by the Islamic bank. The study also explores the implications of the regulatory services performance of Pakistani banks specifically when observed for conventional banks and Islamic banks. The result shows that there is a high degree of awareness on the part of respondents on the advantage of the best regulatory services and role of the Islamic banking system in social and economic growth of Pakistan. The study also shows that respondent orientation is a significant predictor of institutional role in the banking industry. In addition, focus on practices associated with marketing management (market characteristics) is critical in improving business growth. However, Future research should replicate this finding with a larger sample size.