Islamic Banking and Financial Crisis: The Case of Pakistan a Qualitaive Approach

Since the Credit Crunch of 2007-08, a lot of academic and popular literature has focused on the strengths of Islamic banks in the face of financial crises. It is interesting to find out why the developing countries such as Pakistan weren‟t affected by the financial crisis. This paper explores the th...

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Main Author: Khataw, Nazish
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2010
Online Access:https://eprints.nottingham.ac.uk/24699/
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author Khataw, Nazish
author_facet Khataw, Nazish
author_sort Khataw, Nazish
building Nottingham Research Data Repository
collection Online Access
description Since the Credit Crunch of 2007-08, a lot of academic and popular literature has focused on the strengths of Islamic banks in the face of financial crises. It is interesting to find out why the developing countries such as Pakistan weren‟t affected by the financial crisis. This paper explores the theory behind these claims by examining how the Islamic financial system increases market self-discipline by sharing the risks equitably between banks and depositors. It is found that this approach reduces moral hazard, asymmetric information and speculation, as well as reduces the different risks that banks face. This paper also establishes a relationship between risk management and business performance, especially in the face of a financial panic. There has been very little literature provided on the credit crunch affecting the Islamic Banks of Pakistan. This paper focuses its study here for two reasons: first, there are opportunities to compare and contrast Islamic banks with conventional banks; second, why wasn‟t the Islamic Banking sector of Pakistan affected by the financial crisis which makes for a fascinating case study. By analysing the interviews taken at few Islamic banks this study will be carried on. It will talk about the future of Islamic Banks in Pakistan as well. Qualitative research method has been used with a narrative approach. Quantitative data such as annual reports have been used for financial analysis.
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spelling nottingham-246992018-01-31T06:06:05Z https://eprints.nottingham.ac.uk/24699/ Islamic Banking and Financial Crisis: The Case of Pakistan a Qualitaive Approach Khataw, Nazish Since the Credit Crunch of 2007-08, a lot of academic and popular literature has focused on the strengths of Islamic banks in the face of financial crises. It is interesting to find out why the developing countries such as Pakistan weren‟t affected by the financial crisis. This paper explores the theory behind these claims by examining how the Islamic financial system increases market self-discipline by sharing the risks equitably between banks and depositors. It is found that this approach reduces moral hazard, asymmetric information and speculation, as well as reduces the different risks that banks face. This paper also establishes a relationship between risk management and business performance, especially in the face of a financial panic. There has been very little literature provided on the credit crunch affecting the Islamic Banks of Pakistan. This paper focuses its study here for two reasons: first, there are opportunities to compare and contrast Islamic banks with conventional banks; second, why wasn‟t the Islamic Banking sector of Pakistan affected by the financial crisis which makes for a fascinating case study. By analysing the interviews taken at few Islamic banks this study will be carried on. It will talk about the future of Islamic Banks in Pakistan as well. Qualitative research method has been used with a narrative approach. Quantitative data such as annual reports have been used for financial analysis. 2010 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/24699/1/NAZISHKHATAW.pdf Khataw, Nazish (2010) Islamic Banking and Financial Crisis: The Case of Pakistan a Qualitaive Approach. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Khataw, Nazish
Islamic Banking and Financial Crisis: The Case of Pakistan a Qualitaive Approach
title Islamic Banking and Financial Crisis: The Case of Pakistan a Qualitaive Approach
title_full Islamic Banking and Financial Crisis: The Case of Pakistan a Qualitaive Approach
title_fullStr Islamic Banking and Financial Crisis: The Case of Pakistan a Qualitaive Approach
title_full_unstemmed Islamic Banking and Financial Crisis: The Case of Pakistan a Qualitaive Approach
title_short Islamic Banking and Financial Crisis: The Case of Pakistan a Qualitaive Approach
title_sort islamic banking and financial crisis: the case of pakistan a qualitaive approach
url https://eprints.nottingham.ac.uk/24699/