Master of Science in Islamic Banking & Finance


Department of Finance

Faculty/ School

School of Business Studies (SBS)

Date of Submission

Fall 2022


Haroon Tabraze, Adjunct Faculty, Department of Accounting & Law

Committee Member 1

Dr. Irum Saba, Associate Professor, Program Director MS-IBF


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

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