A Framework for Evaluating Islamic Banking from “Within”

  • Muhammad Zahid Siddique National University of Science and Technology, Islamabad, Pakistan.
  • Mazhar Iqbal Quaid-i-Azam University, Islamabad, Pakistan.

Abstract

Literature on Islamic finance/banking claims that this discipline differs significantly from its counterpart both in its business forms as well as underlying values which guide those business practices. Given the growth performance of Islamic finance/banking, it is important to develop a framework for examining convergence between theory and practice of Islamic banking. Islamic banking theory and practice have been evaluated on several grounds, but no integrated theoretical and empirically verifiable framework has thus far been proposed to take account of the practice of Islamic banking in the light of its own objectives. This study aims at developing an empirically verifiable theoretical framework for this purpose. A set of testable propositions is derived from the theory of Islamic banking proposed by its pioneers. This work will provide the foundation for investigating empirically to what extent Islamic finance/banking theory and practice have converged to its ideals over time.

Author Biographies

Muhammad Zahid Siddique, National University of Science and Technology, Islamabad, Pakistan.

Assistant Professor, Department of Economics, School of Social Sciences and Humanities, National University of Science and Technology, Islamabad, Pakistan.

Mazhar Iqbal, Quaid-i-Azam University, Islamabad, Pakistan.
Assistant Professor, Department of Economics, School of Economics, Quaid-i-Azam University, Islamabad, Pakistan.
Published
2018-05-14
How to Cite
Siddique, M. Z., & Iqbal, M. (2018). A Framework for Evaluating Islamic Banking from “Within”. ISLAMIC STUDIES, 53(1-2). Retrieved from http://irigs.iiu.edu.pk:64447/ojs/index.php/islamicstudies/article/view/177