Global Journal of Business Management

Global Journal of Business Management ISSN 2736-1721 Vol. 14 (3), pp. 001-006, March, 2020. © International Scholars Journals

Full Length Research Paper

Islamic banking system: Stake holder’s attitude towards the Islamic banking system objective setting”

Naveed Azeem Khattak1, Khashif-Ur-Rehman2* Nadeem Sofwan3 and Wasim Ullah4

1Shaheed Zulfikar Ali Bhutto Institute of Science and Technology, Pakistan.

2Iqra University Islamabad, Pakistan.

3Foundation University, Pakistan.

4Islamic International University, Islamabad, Pakistan.

Accepted 26, October 2019

Abstract

The concept of Islamic banking is not new, but is introduced in the current financial market after very long time. The Islamic banking system is getting a good percentage of the total world financial market. In the financial market there is a strong rivalry, for the Islamic banking industry (IBI) that is conventional banking system. Now the Islamic banking system must have to consider certain important factors while setting its objective, for this it must have to consider its stakeholder perception, means what its stakeholders wants, for the objective setting of the Islamic banking system, we must take the opinion of the stakeholders. For this we have to consider two major objectives of Islamic banking system. On the basis of that we got the respondent attitude. Towards the social and commercial objective and these objectives are consisting of four different variables. To get the relative importance or association of the different variables we used factor analysis. For factor analysis initially we adopted Kaiser-Meyer-Olkin measures. At the end we found the difference in the opinions of the respondent regarding the both objectives; social and commercial objective respectively, that is computed by applying non-parametric statistic Kruskall-Wallis test. Finally we come to the conclusion that the stakeholder of Islamic banking system is mostly concerned, with the social objective of the Islamic banking rather than commercial objective.

Key words: Financial market, Islamic banking industry, Kaiser-Meyer-Olkin.