Islamic banks in Pakistan outperform conventional banks due to key factors.
This study looked at what affects the financial performance of Islamic and traditional banks in Pakistan. The researchers found that factors like the country's GDP and inflation are linked to how well Islamic banks do financially. Inflation has a big impact on traditional banks' return on assets. The size of a bank can affect its profitability, with smaller Islamic banks doing better and larger traditional banks performing well. The age of a bank also plays a role, with older banks not doing as well in terms of return on assets.