Evaluation of Factors Contributing towards the Adoption of Islamic Banking: Evidence from Lahore, Punjab, Pakistan

Abstract

Since the introduction of Islamic Banking in the international financial paradigm extensive research has been under attention with the purpose of identifying the factors that influence the adoption of Islamic banking. With the objective of identifying the factors that influence the selection of Islamic Banking in Pakistan, this study investigates the impact that factors like attitude, social and religious influence, governmental support and pricing have in deciding whether to go for conventional banking or Islamic banking. The sample comprised of 250 respondents and collected from customers of Islamic banks by using a structured questionnaire. The study used SPSS to analyze the data using reliability analysis, factor analysis, descriptive analysis, and correlation and regression analysis. The results suggest that attitude, social and religious influence and government support to be significant factors in inclining a customer towards Islamic banking.