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Islamic banking (IB) is growing rapidly not only in Islamic countries but also in all over the world. The purpose of this paper is to stumble on the features that have an impact on Islamic banking adoption (IBA) in case of Pakistan.

The identification of the factors that affect IBA has made by extending the theory of reasoned action (TRA). However, the conceptual model for this study includes knowledge (K), business support (BS), government support (GS), reputation (Rep), religious obligation (RO), cost-benefit (CB) and social influence (SI) as the independent variables. To test the conceptual framework data were collected through a survey by distributing the 400 questionnaires among users- and non-users of Islamic banks. Multiple regression analysis was applied to test the hypothesis of this study.

The findings of the study suggest that Rep, CB, RO and SI has a highly significant and positive influence on IBA. On the other hand, K, GS and BS have insignificant influence on IBA. The bottom line of this study suggests that more the ROs will be adopted by Islamic banks, more will be the tendency to adopt it by a bank customer in case of Pakistan.

The generalizability of the findings of this research is limited to IB.

Findings of the study present worthy insight especially for the practitioners to develop significant strategies to bridge the gap between industry and academia in case of IB.

This study is an extension of TRA.

The purpose of this paper develops a conceptual model of social influence for Internet banking adoption (IBA) using social networking platforms (SNPs). It identifies the antecedents of social influence that can positively and negative influence the IBA among a targeted population of conventional and Islamic banks. Moreover, this paper contributes various factors to social influence theory with the purpose of enhancing its implication in the context of Internet banking uptake in developed and developing countries.

This study uses a social constructivism approach to understand customer experiences, thoughts, knowledge, awareness and perceptions in relation to IBA. For this study, data were collected from 30 respondents using semi-structured interviews and purposive sampling.

Social influence comprises customer recommendations, suggestions, ratings, reviews, experiences and thoughts regarding the IBA of Islamic and conventional banks. The findings reveal that social reviews, social experts, social consensus, social responsibility and social perceptions are the key antecedents of social influence that can enhance IBA of SNPs. The research finds that positive social reviews, expert support, consensus, social responsibility and social perceptions are significant in relation to conventional Internet banking. The respondents revealed serious concerns about the privacy of their personal and financial information especially in relation to Islamic banks.

The effective and well-organized use of SNPs can foster service reviews, word of mouth, higher levels of service awareness, interactive communication, social consensus and social trust to drive the adoption of Internet banking. This study proposes the conceptual model which has positive business implications and provides the banks direction to use the SNPs to their advantage to influxes their customers to adopt the use of Internet banking.

Most previous studies have used technology acceptance model, theory of planned behavior and unified theory of acceptance and the use of technology theories in the adoption of technology and IBA. These theories have not fully illuminated the role of social content as a way to enhance or decrease the number of customers in conventional and Islamic banks. This study develops social influence theory by exploring several dimensions (i.e. social reviews, awareness, consensus, cooperation and experts support) in the context of IBA for users of SNPs. Social influence can create more reviews and can lead to more prepurchase information. It can drive customer inquiries and engagement and can inform purchase decisions for IBA. On the other hand, it can motivate existing customers of Islamic banks to use conventional banking services due to effective word of mouth.

Islamic Banking has been in the limelight since the recession of 2008. Although around for a long time, it is enjoying a renaissance of sorts. This case provides an introduction.

EMBA and/or MBA introduction to banking, senior semester undergraduate, specialization in Islamic Banking.

This case is written in the form of an interview with Meezan Bank, one of the leading financial institutions in the Islamic banking sector. It is based on primary as well as secondary data obtained via interviews and documentary analysis.

This is an analytical case and not a decision-making one. The main theme of the case revolves around analysing what Islamic banking is, the challenges that Meezan has faced, the pros and cons of doing business this way and the future issues it can face.

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CSS 7: Management Science.

This study aims to explore whether customers’ perceived congruity between their self-concept and the brand personality of the Islamic banking system determines their intention to adopt Islamic banking services.

The authors use primary data collected through a structured questionnaire from 375 Malaysian bank customers. The scales were tested for psychometric soundness before the final data analysis. The authors examined the hypothesized linkages in the AMOS software package through structural equation modeling.

Customers’ actual self, ideal self and social self-congruity significantly predict their intention to adopt Islamic banking. However, the impact of actual self-congruity on Islamic banking adoption is stronger for publicly self-conscious customers. In contrast, public self-consciousness dampens the effect of ideal and social self-congruity on Islamic banking adoption.

Digressing from the conventional utilitarian position, this study offers a novel contribution to the Islamic banking literature by presenting an identity perspective of the determinants of Islamic banking adoption. The primary highlight of this study is the deployment of the congruity theory to emphasize the role of the customer’s self-concept in explaining her intention to adopt Islamic banking services.

The purpose of this study is to document how a central bank can perform its primary and secondary functions in a Sharīʿah-compliant manner. It also seeks to investigate the outcomes of the experiments of Muslim-majority countries in this regard.

As a first step, a detailed review of existing literature is conducted, which discusses the views of scholars and practitioners on the central banking mechanism in a fully Sharīʿah-compliant financial system. Moving further, the case studies of Iran, Sudan and Pakistan are presented to highlight experiences of regulators from three Muslim-majority countries, which aimed to achieve full compliance with Sharīʿah (Islamic law) principles related to Islamic finance. To evaluate their models, an assessment of their practices is performed in the light of Sharīʿah rules and principles based on existing literature. Finally, the issues involved in establishing a Sharīʿah-compliant central bank (SCCB) are discussed and improvements are suggested.

It is found that Iran played an effective role in pursuing broader objectives of monetary policy by setting priorities for credit allocation and assisting the government in reducing expenses; however, with respect to instruments, its experience is limited to the rebranding of conventional products. Sudan has not only used monetary policy to effectively curb inflation but also it has introduced various indirect instruments to perform monetary operations. Pakistan succeeded in formulating a theoretical roadmap to establish a SCCB but the desired objectives could not be achieved because of multiple factors.

This study has important policy implications for regulators and policymakers from Muslim countries, who can use the findings in shaping effective Sharīʿah-compliant central banking practices in their respective countries.

This study discusses the salient features of an important Islamic financial institution, the central bank and evaluates the experiments of three Muslim-majority countries in implementing Sharīʿah-compliant central banking practices. To the best of the knowledge, this evaluation has not been performed in the existing literature and the present study fills in this gap.

This study aims to evaluate cognitive, personal and environmental factors affecting investors’ behavioral intentions (BI) to invest in ṣukūk (Islamic investment certificates) in Pakistan.

Data from 462 participants were collected through survey-questionnaires by using the convenient sampling technique. Hypothesized proposed relationships among the constructs were examined by applying the structural equation modeling (SEM) technique through smart partial least squares.

Compatibility, internal influence, external influence and intrinsic motivation were found to be significant predictors of investors’ BI to invest in ṣukūk. In addition, it was found that the religious aspect not only affects investors’ BI positively but also works as a moderator in the relationships between BI and both internal and external influence.

The results are quite helpful for ṣukūk issuers and regulators to consider cognitive, personal and environmental factors that might enhance the adoption of ṣukūk, especially among Muslim investors.

This study is among the few research studies that shed light on investors’ BI to invest in ṣukūk. Using social cognitive theory, the study investigates the cognitive, personal and environmental factors influencing ṣukūk adoption, which were previously unexplored. In addition, this is the first study that unveils the influential factors of ṣukūk adoption in Pakistan, a Muslim-majority country.

This study investigates the determinants of net interest margin (NIM) and tests the decoupling hypothesis in Turkey's Islamic and conventional banks.

This study has employed a panel quantile model (PQM) to assess the net interest margin (NIM) and test the decoupling hypothesis in the dual banking system of Turkey.

The empirical results show that the impact of equity is positive for both Islamic and conventional banks but relatively more robust for Islamic banks. Moreover, it is observed that return on assets has a positive association with NIM in both types of banking systems. Interestingly, the impact increases from lower to higher quantiles, but a higher acceleration rate is observed for Islamic banks. The study also finds that, as bank stability increases, NIM decreases for both groups of banks but more stably for Islamic banks, resulting in lower margins than conventional banks. Thus, the paper confirms the decoupling hypothesis and suggests that, to increase profit margins, Islamic banks need to increase assets and equity.

The paper confirms the decoupling hypothesis and suggests that to increase profit margin, Islamic banks need to increase assets and equity.

Since both equity and assets contribute positively to interest margins, policymakers in the industry need to increase the size of equity and assets to get maximum returns.

This is one of the first studies to investigate NIM's determinants and test the decoupling hypothesis in the Turkish dual banking system using a non-parametric MCMC panel quantile regression (QRM) model.

In 2014, Islamic finance assets are estimated to have exceeded US$2 trillion with over 100 products and an annual growth of over 20.7 per cent, across more than 76 countries, most of which are members of the Organization of Islamic Cooperation (OIC). Despite this remarkable market expansion, numerous OIC members such as Uganda are yet to fully adopt this unique financial system because of regulatory constraints. Thus, the purpose of this paper is to examine the extent to which Uganda can benchmark the Malaysian experience and best practices to overcome the regulatory challenges in introducing Islamic Banking.

This exploratory study adopts qualitative research methods through documentary review to elicit relevant information from the existing laws in Uganda that would accommodate the Islamic Banking system. Interpretive analysis and analytical methods are used to analyze data.

The Malaysian experience and best practices of Islamic Banking regulation need to be benchmarked by regulators. Relevant laws which require some amendments include section 37(a) and 38(1) of the Financial Institutions Act 2004 and section 29(3)(a) of the Bank of Uganda Act 2000. Similarly, tax legislation needs amendments to ensure a level playing field for Islamic finance and conventional finance products.

This is one of the earliest studies on models of Islamic Banking regulation suitable for adoption in Uganda. This study contributes to literature on how other jurisdictions (especially those with less regulatory prudence) could regulate Islamic Banking in a dual banking system jurisdiction.

This paper aims to determine the importance of the Islamic banks in the monetary transmission process in the Malaysian economy. In particular, the paper analyzes the relevance of Islamic banks' financing and deposit in channelling the monetary policy effects to the real economy.

The paper relies on the co‐integration test, impulse response functions, and variance decomposition analysis, focusing on the period from January 1994 to May 2007.

The results show that both Islamic banks' financing and deposit play important roles in the monetary transmission process in the Malaysian economy. In particular, both Islamic deposit and financing are shown to be statistically significant in linking the monetary policy indicator to the real output.

The results imply that the monetary authority should also consider the Islamic banks in the implementation of monetary policy in Malaysia. The results also imply that ensuring the stability of the Islamic financial institutions is just as important as that of the conventional counterpart to achieve an effective transmission of monetary policy in the economy.

This paper is a pioneer study undertaking empirical investigation on the role of Islamic banks in the monetary transmission process in an economy.

This study aims to explore and analyze the issues in weightages-based profit distribution mechanism in Islamic banks from Shari’ah, practical and regulatory perspectives.

A qualitative research approach was used in this study based on primary data collected through semi-structured interviews from Shari’ah practitioners and senior industry experts in the field of pool management in the Islamic Financial Services Industry of Pakistan.

The current study found that the weightages-based mechanism conforms to the rules of Mudarabah and; therefore, permissible. However, the elements of exploitation, transparency and fairness require further research, as these elements seem to exist in this mechanism. It was also found that there are many loopholes in the regulatory guidelines for pool management in Islamic banking institutions (IBIs) in Pakistan resulting in practical issues.

The findings of this study may help improve pool management in IBIs, which in turn may cater the objections raised by academicians, customers and industry experts. Moreover, the alternative solution based on the findings of this study can be transformed into a proposal for regulators to take necessary actions against unfair profit distribution and issue further improved guidelines for IBIs in Pakistan.

To the best of the authors’ knowledge, very limited studies have been conducted on pool management particularly with issues from different perspectives and alternative solutions have been suggested that may act as a proposal for IBIs as well as regulatory authorities.