Islamic Law

Stiff and rising competition, consolidation of banks, deregulation, globalization, Liberalization, and continuous innovation providing Islamically acceptable financial services to give rise to the interest among the interested parties in critical check in Islam banks. Incase these are investors, depositors, or regulators, bank managers, performance evaluation in banks is criticalfor all relevant parties , competitive financial market bank evaluation provides signal to investors -depositor whether to withdraw funds or invest from the financial institution. Customers may also be interested in checking the performance of the financial institution as they are not entitled to nominal values and fixed returns of their funds. The outcome of the previous management is crucial to the current managers. The soundness and safety of a banking system and preservation of public confidence is important to all stakeholders .The performance of banks is monitored by bank to identify banks experiencing shortcomings. Regular cheking of performance is important so tha some of the existing shortcomings and problems may remain unnoticed leading to future financial failure Among different tools and techniques used by different authors , the most commonly used technique is financial ratios which were used to mesure and compare both conventional banks and Islamic bank.

Performances in the liquidity, profitability, solvency, risk and efficiency. F-test and T-test are used to know the significance of the results. There are thirty-five banks in total operating as commercial banks in Pakistan including six full-fledged Islamic banks. Out of these six Islamic banks, five are private banks and for more details on total banks of all types in Pakistan, please refer to the section “Islamic Banking Sector”. one is a foreign bank. Among all Islamic banks, Meezan Bank Limited (MBL) is the only old, somewhat big and experienced domestic and private Islamic bank...