ICTACT Journal on Management Studies

Muhammad Ashar Asdullah ¹, Hassan Yazdifar ¹

Affiliations
1 Salford Business School, University of Salford, GB

Abstract

The purpose of this particular study is to evaluate the factors that influence the young customers (18 to 24 years age) in selection Islamic banking in Pakistan. Islamic banking is emerging vastly in Pakistan due to its majority of Muslim population. Both qualitative and quantitative methods have been chosen to conduct this research. In this respect, questionnaire survey was carried out, involving 100 customers of three Islamic banks of Pakistan, and 5 interviews have been conducted with authorities of Islamic banking. The results have clearly shown that factors influencing male and female respondents are not similar. It has been concluded that female respondents do not have much awareness and knowledge about basic principles of Islamic Banking. It might be due to the fact that they are not involved directly in businesses. Male respondents were of the view that they use Islamic Banking services because of religious perceptions, cost effectiveness and quality of services. Main factor for selecting Islamic banks is Religious motivation of youth. It has been recommended that Islamic banks need to offer attractive returns, and awareness programs must be initiated to educate customers about the characteristics of Islamic banking.

Keywords

Islamic Banking, Young Customer.

Full Text

     

Haisen ¹, Hassan Yazdifar ¹

Affiliations
1 Salford Business School, Salford University, GB

Abstract

The shadow banking system in China has its own characteristics compared to conventional commercial banks and foreign shadow banking system. Its emergence is important to the economic development and financial system in China. However, it also challenges the implementation of monetary policy and regulation. China is in the economic shunt period and their monetary policy system is somewhat lagging behind the advanced economic system. This paper is therefore designed to figure out impacts of the shadow banking system on monetary policy. After analysis of SVAR model, results show that an increase in the growth rate of the shadow banking system would affect the monetary policy by increasing money supply and the value of CPI. Moreover, the implementation of easy or tight monetary policy by increasing or decreasing the benchmark interest rate would not be able to achieve the original goals due to the activities of the shadow banking system. It is suggested that Chinese authorities should follow the market requirement to improve the monetary policy system by means of supervision and regulation on the shadow banking system which would improve the monetary policy effect.

Keywords

Shadow Banking System, Monetary Policy, China.

Full Text