The aim of this study is to measure the relationship between service quality and customer satisfaction among the customers of Pakistani Islamic banks. This study employed a modified SERVQUAL model by introducing a unique dimension of compliance in the context of service industry. A self-administered questionnairebased field survey was conducted with the help of modified SERVQUAL dimensions. Data were gathered from 450 walk-in customers of Islamic bank. The sample data were statistically analysed through exploratory factor analysis followed by confirmatory factor analysis (CFA) and structural equation modelling (SEM) analysis to determine the service quality perception and customer satisfaction. Namely, CFA is used in order to test the model validity, while SEM is used for testing the impact of different service quality dimensions on customer satisfaction. Results revealed that the multidimensional service quality scale is positively and significantly associated with the unidimensional scale of customer satisfaction. In addition, the compliance dimension of the SERVQUAL model proved its importance by showing the highest contributing factor in the overall model. Furthermore, this study has practical implications for the policy-makers of Islamic banks to better understand the behavioural intentions of Islamic bank customers.

Purpose The purpose of this study is to examine the factors which affect mobile banking (M-banking) acceptance in Islamic banks of Pakistan by using the modified unified theory of acceptance and use of technology (UTAUT) model. The performance expectancy, facilitating conditions, social influence, effort expectancy, perceived value, habit and hedonic motivation are taken as independent variables. Similarly, the intention to adopt M-banking is taken as the mediator, and actual usage is used as the dependent variable. Design/methodology/approach The data are collected by using the survey method, and the five-point Likert scale is used for this purpose. The statistical techniques applied to the dataset were confirmatory factor analysis and partial least square structure equation modeling. Findings The empirical evidence shows that all the variables except for social influence have a significant positive effect on the intention which results in actual usage. Practical implications This study will help the Islamic banks in boosting the M-banking growth and decision-makers in crafting those strategies that increase the M-banking acceptance. Originality/value This paper makes a unique contribution to the literature with reference to Pakistan, being a pioneering attempt to investigate the factors which affect M-banking acceptance in Islamic banks of Pakistan by using the modified UTAUT model.

Purpose-The purpose of this study is to examine the internal determinants of bank profitability and stability in Pakistan banking sector. Because of specific research objectives, this study excludes the external factors of profitability and stability to find the role of bank internal determinants in achieving high performance. Design/methodology/approach-A panel regression analysis is built on a balanced panel data using 24 commercial banks over the sample period of 2007-2015. The authors performed a separate analysis of bank profitability and stability. Both models used a comprehensive set of bank internal determinants. Findings-The results that were obtained from profitability model indicated that bank size, credit risk, funding risk and stability have statistically significant impacts on profitability, while liquidity risk showed the statistically insignificant impact on profitability. Regression findings from stability model reveal that bank size, liquidity risk, funding risk and profitability have statistically significant impacts on stability, while credit risk had an insignificant effect on stability. However, the effect of the financial crisis is uniform and showed statistically insignificant impact in both models. Practical implications-Overall, the authors' findings bring some new but useful insights to the banking literature. Some recommendations may be functional for the sustainable performance of banks. Originality/value-In view of study results, the authors provide interesting insights into the practices and characteristics of banks in Pakistan. This study also highlights significant bank internal determinants to improve understanding in the existing literature.