Purpose – The purpose of this paper is to analyse the factors responsible for the rise and growth of smaller Islamic banks in the last decade. Design/methodology/approach – Z-score analysis is used to test the stability of both smaller and larger Islamic banks. The pooled ordinary least...

Pakistan has experienced tremendous growth in Islamic banks in recent years, particularly after the Supreme Court decision of 2002. This research study was focused on the actual practices of full-fledged Islamic banks working in Pakistan. It reviewed and analysed the deposits and financing...