COMPARATIVE STUDY: CONVENTIONAL AND ISLAMIC BANKING PERFORMANCE IN PAKISTAN

The study aims to investigate conventional and Islamic banking in Pakistan over the period (2009-2019) using accounting ratios to measure performance in terms of profitability. Regression analysis is used to measure the influenced of CAMEL variables as independent variables and ROA and ROE used as dependent variables to measure the performance of Conventional and Islamic Banks. The results revealed that the Islamic banks allocated a greater share of their assets for financing activities as compared to conventional banks moreover, their resources are also better capitalized. Besides, the profitability of Islamic banks has gradually improved than conventional banks. Thus, the bank's and shareholder's market value in respective systems have progressively enhanced by executing different approaches. Islamic banking system deals in asset-based financing whereas, the conventional banking system deals in loans and advances. Inspiring factors for clienteles of Islamic banking are following Shari'a compliance, whereas an extensive range of products and services are offered in the case of the conventional banking system.