Journal of Islamic Banking and Finance

Evolutionary Islamic Banking Service
Karim Ullah

Abstract
This paper develops a conceptual framework that explains how an Islamic banking product (can) evolves into various and heterogeneous service practices in different contexts of its application. In theory, there is an argument that a service should continuously evolve into various practice environments to fulfil the requirements of various contexts and thus sustain. In practice also, the regulators such as the State Bank of Pakistan adopted an evolutionary regulatory framework that calls for designing and development of Islamic banking products that evolve into the emergent market needs. The proposed framework in this paper, describes a five steps evolution in an Islamic banking product, namely i) Model Contracts ii) Bank-level specifications iii) Branch-level Specifications; iv) Customer-level specifications v) and Feedback Evolution. The framework advances our understanding of how an Islamic banking product does or should evolve into to the practice environments of banks to effectively enact the evolutionary regulatory frameworks in the Islamic banking industry.

Full Text: PDF     DOI: 10.15640/jibf.v3n2a9