. Develop two themes and explain the themes in paragraph form using relevant quotations from the transcripts.Also a develop a thematic map.

The following extracts are from the transcripts of interviews conducted as part of a qualitative study investigating the perceptions of Islamic Bank Mangers about Islamic Banking in Pakistan.

Transcript of Respondent Ones Interview (I: Interviewer R: Respondent)

I: What are your views on Islamic Banking?

R1: Islamic banking provides us a banking system that fulfills customers needs according to the Shariah rules.

I: Islamic or Conventional Banking: which is more favorable banking system for the people of Pakistan? Why do you think so?

R1: Islamic banking system is more favorable for the people of Pakistan as Pakistan is an Islamic republic, so it is better for the people to fulfil their banking needs as per the laws and principles of Islam.

I: What challenges do you feel Islamic Banks face in Pakistan?

R1: Since Islamic banking system is continuously evolving and boosting day by day hence the problems and challenges are also increasing simultaneously. The biggest challenge faced by us is the lack of knowledge and understanding about the difference between Islamic and conventional among the people of our society. Furthermore, another basic problem is the profit-sharing rate between conventional and Islamic banks. Since profit rate changes every month in Islamic banking system according to the banks earnings whereas it is fixed in conventional banks so it gets difficult to make customers understand the fluctuations. Another most common challenge is the monitoring of the funds regulatory system that either it is Shariah compliant or not.

I: What can Islamic Banks do to overcome the challenges they are facing now?

R1: Islamic banks should be firm to the principles of Shariah and Islamic laws. They should educate the people of Pakistan regarding the benefits of Islamic banking and the difference between Islamic and conventional banks by conducting seminars. Furthermore, government of Pakistan should take some steps to make an act or any institution that will monitor the fund regulation and core banking system of Islamic banks to make sure the implementation of Shariah compliant rules and compliance with true faith.

Transcript of Respondent Twos Interview

I: What are your views on Islamic Banking?

R2: As being a Muslim we should only use Islamic banking. It is not optional but we must follow Riba free banking as mandatory solution. It is a good initiative that we now have Islamic banking facilities which are growing.

I: Islamic or Conventional Banking, which is more favorable banking system for the people of Pakistan? Why do you think so?

R2:95% of the population of Pakistan is Muslim, so I would say that the favorable banking system should be Islamic banking. For this to take place in 1980s during the government of general Zia an initiative was taken and after 2002 it is growing till now in double digits.

I: What challenges do you feel Islamic Banks face in Pakistan?

R2: The biggest challenge that we face is that the customers we have to deal with are not true Muslims in regard to their actions. They are simply Muslim by name. So sometimes when the rate of return is low the customers refuse to do Islamic banking, even if we guide them that this a halal way with no Riba but still they reply by saying that I want more returns. Furthermore, we have regulatory challenges which means that there is still no standardization among all the Islamic banks and liquidity management challenges where Islamic banks are unable to manage liquidity well as compared to skillful conventional banks. Another challenge is the right combination of knowledge about Islamic banks and banking so we face difficulties at the time of hiring we are unable to find right personnel as no university is offering specialization degrees in this field currently.

I: What can Islamic Banks do to overcome the challenges they are facing now?

R2: We are growing and trying to overcome these challenges with the help of State Bank. IBA, LUMS, CBM and other universities are educating the new generation about Islamic banking. So I think whatever the challenges we have now are being addressed and resolved gradually. Within 5-10 years we will overcome the current challenges.

Transcript of Respondent Threes Interview

I: What are your views on Islamic Banking?

R3: According to me, Islamic banking is a system of conducting banking activities according to the Shariah. It was recently revived by Mr. Taqi Usmani, who has brought a large number of Islamic financial structures and products based upon those shariah compliant structures that are parallel to conventional banking systems products. However, these products are in accordance with the Islamic teachings.

I: Islamic or Conventional Banking, which is more favorable banking system for the people of Pakistan? Why do you think so?

R3: I think Islamic banking should be favored by the people because we all are Muslims. We live in a country which was formed and created in the name of religion Islam. Therefore, all our activities whether social or financial should be according to the teaching of our religion. We should do what our religion has asked us to do and we should also refrain from doing prohibited activities.

I: What challenges do you feel Islamic Banks face in Pakistan?

R3: The challenge face by Islamic banks which I have noticed is that there is no support and encouragement of the people. A large portion of our population lacks knowledge about the basic working of an Islamic bank. This is why many people say that Islamic banks are making people fools the name has been changed and a bank is a bank. The name has been changed to gain customers but all the other operations are the same as conventional banks. These remarks by such ignorant people cause a damaging image as it is hard to change the mentality of our society.

I: What can Islamic Banks do to overcome the challenges they are facing now?

R3: We can overcome by setting up a system of standardization that is same all over Pakistan regarding Islamic activities just like Middle Eastern countries. This can be done with the help of the state bank of Pakistan. The most important step which is required to overcome many of our problems is to give knowledge and proper education about Islamic banks and the working of Islamic banks to the people so that all the misconceptions are cleared.

Note: Research Method And Skill (question)