A Comparison of Islamic and

Conventional Banking system

Group Members
QAZI MUHAMMAD WAQAS
ZULQARNAIN HAIDER
SYED NOUMAN ATHER

Outlines
Introduction of this Project
Objective of the Project

Banks selected for study

Methodology
Data Analysis
Asset Liability Management & its Techniques
Financial Ratios
Differences between Islamic and Banking System
Similarities & dissimilarities
Conclusion/Findings
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Introduction of this Project

In this Project our main focus on
three main things regarding Islamic
Banking system.
We will discuss the Comparison of
Conventional & Islamic Banking
Systems
According to these things:
Asset Liability Management,
Sources & Uses of Funds,
Similarities & Dissimilarities

Literature Review

Objective of the Project

Thats why our discussion will around
these things:
How Islamic Banks manage their assets and
liabilities
what is the main sources and uses of funds
what are the main and core similarities &
dissimilarities between Islamic bank and
conventional bank.
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Banks selected for study

METHODOLOGY
2011-2015
Secondary Data
Income Statement
Balance Sheet
Various Theories
Primary Data
Interviews
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Data Analysis
MS Excel 2013
MS Word 2013

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Asset Liability Management

Assets liability management is very important
phenomena in banks earning strategy even in
Islamic banking system, all the investments
contributions to this effects to be used even on
and off-balance sheet components in ALM.
The risk taking is the key determinant for the
banks either conventional or Islamic to
portfolio or ALM.
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Objectives of ALM
To manage the portfolio in a manner consistent with the
banks investment policy.
To obtain the desired earning while holding risk at
acceptable levels.
To maintain adequate liquidity at a cost consistent with
earnings goals.
On and Off-balance sheet investments are considered in
ALM.
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Techniques of ALM.
Matching Techniques.
Swap Techniques.
Futures as a Hedging Technique.
Options as Hedging Techniques.
Effective Portfolio Management.

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Financial Ratio
Four Classes Of Ratio
Profitability Ratio
Liquidity Ratio
Risk Ratio
Efficiency Ratio
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Differences between Islamic and

Banking System
Money
Agreement for Exchange
Transection
Interest
Loss
Control over inflation
Scheme
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SIMILARITIES & DISSIMILARITIES

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Conclusion/Findings

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