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A REVIEW PAPER ON THE PERFORMANCE OF ISLAMIC & CONVENTIONAL BANKING IN AFGHANISTAN WITH A FOCUS ON PRODUCTS AND SERVICES

INAMULLAH FROTAN 1, and MOH. SHAKER EBRAHIMI 2.

Vol 18, No 07 ( 2023 )   |  DOI: 10.17605/OSF.IO/XAUJY   |   Author Affiliation: Faculty of Business and Management Kabul, Ministry of Higher Education, Bakhtar University, Afghanistan 1,2.   |   Licensing: CC 4.0   |   Pg no: 1022-1028   |   Published on: 21-07-2023

Abstract

The aim of this study is to compare the performance of Islamic and Conventional Banking in Afghanistan with a focus on products and services. For the aforesaid purpose I have reviewed more than 25 related articles and the finding revealed that Islamic banking is in a good position rather than conventional banking in the market and consumers, especially in Islamic countries, prefers to use Islamic banking products than conventional banking because of the profitability, interest-free, and quality. They are considering Islamic banking as the only alternative to conventional banking. And the undertaken investigation shows that Islamic banking is more profitable, more liquid, and less risky than conventional banking and shows a significant difference in profitability ratios, liquidity ratios, and risk and solvency ratios between Islamic and conventional banks. Likewise, the study shows that Islamic banking is not only used by Muslims in Islamic countries it has a good demand and accountable share in the non-Muslim countries and most of the non-Muslims are using it as products and services.


Keywords

Islamic Banking, Conventional Banking, Products, and services comparative study.