Abstract:
Over the decade, Islamic banking has experienced global growth rates of 10-15
percent annum, and has been moving into an increasing number of conventional
financial systems at such rapid pace that Islamic financial institutions are present
today in 51 countries. People are becoming more aware of Islamic banks. Islamic
bank is different form conventional banking in most aspects, since its close tie to
religion is very important.
This study mainly focuses in the features of Islamic and conventional bank. The paper
seeks to identify and clarify the differences between Islamic and conventional
banking. Moreover this study is highlighted sub objectives .such as understanding the
system of Islamic finance and its components.
This is a descriptive analysis with a use of primary and secondary data sources.
Primary data were collected through questionnaires. Secondary data were collected
from book and articles of the Islamic and conventional banks, internet and relevant.
documents. Questionnaires were issued for 100 banks customers and professionals in
conventional and Islamic banks. This is based on purposive and random sampling
method.
Major findings of this study are that Islamic bank is different from conventional bank
and Islamic bank is better than conventional bank.
