Degree
Master of Science in Islamic Banking & Finance
Department
Department of Finance
Faculty/ School
School of Business Studies (SBS)
Date of Submission
Fall 2022
Supervisor
Haroon Tabraze, Adjunct Faculty, Department of Accounting & Law
Committee Member 1
Dr. Irum Saba, Associate Professor, Program Director MS-IBF
Keywords
ROE, ROA , Islamic Bank , Profitability
Abstract
To identify and analyze the impact of the discount rate of Pakistan upon Islamic banks (IBs) and conventional banks (CBs) which will help us to find out the contribution of such institutions to financial stability and designing monetary policies. This article analyzes and identifies the impact of interest or policy rates on deposit and loan loans by conventional and Islamic banks, with particular reference to the period between Jan 2011 to Dec 2020 based on the regression model. Theoretically, it is expected that the IBs work on an Interest-free banking model, and they shall not be affected by any change in the interest rate or policy rate. However, in concurrence with the previous studies. The article finds that IBs in Pakistan are influenced by interest or Policy rates.
Document Type
Restricted Access
Submission Type
Research Project
Recommended Citation
Haque, S. (2022). Impact of Interest Rates on profitability of Islamic and Conventional Banks, Pakistan (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/etd-ms-ibf/30
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