ABSTRACT
This chapter aims at drawing the evidence from the banking sector of Bangladesh, Indonesia, Malaysia, and Pakistan, where Islamic banking is in a state of rising, and both Islamic and conventional banking operate simultaneously. It contributes to the promulgation of an appropriate road map for patronizing the acceleration of profit-and-loss sharing modes of financing of Islamic banks. The chapter reviews the Islamic bank rent approach and attempts to identify whether Islamic banks need more bank rent opportunities than their conventional counterparts. It provides an overview of the Islamic banking sector in Bangladesh, Indonesia, Malaysia, and Pakistan. The chapter highlights the quantitative and qualitative evidence from the Islamic banking sector of these countries. It concludes by raising several policy options for regulators to design an appropriate regulatory framework for making Islamic banks as prudent financial intermediaries for the society.
