EFFICIENCY ANALYSIS OF ISLAMIC BANKING IN PAKISTAN

Abstract

The aim of the study was to evaluate the efficiency analysis of Islamic banking working in Pakistan. The study adopted the causal design because it enabled us to determine ‘how’ and ‘why’ the dependent variable changed due to variations in the explanatory variable. The data used in this research was quantitative data. There are five (5) full fledge Islamic banks which are purely with Riba free banking (SBP IBP Bulletins, 2019). The study selected all the five (5) full-fledged Islamic banks working in Pakistan on Purposive sampling technique. Data will be collected form the annual reports of all full-fledged Islamic banks working in Pakistan, for five (5) years from 2015 to 2019. This study used a model which was adopted from the CAMEL model of 1979 in examining the effect of bank specific factors on the performance of Islamic banks. Regression and correlation was used to find out the effect of independent variables on the dependent variable.