Table of contentsHistoryPre-nationalization of 1960s Nationalization of 1980s Post-nationalization of 1980sDeregulation of 1990sEvolution of banking system in PakistanConventional Banking System: On the other hand, conventional banking systems are much longer than Islamic banks. Through experience and product selection, traditional banks are more advanced. Conventional banking is based on a true intermediary model which lends borrowers to suppliers then loans to businesses or individuals. They offer marginal interest rates between loan rates and loans. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original EssayThey also provide banking services, such as credit cards and guarantees. They make part of their profits from cheap budgets received via demand deposits. Conventional banks are prohibited from trading and their assets are heavily limited to a small portion of their net worth. For traditional bank financing activities, they are mainly based on interest. Conventional banks essentially pay their customers if they pay more to the bank. However, their rental products require a more detailed explanation of the rental section. Obviously, interest-based transactions are prohibited and completely prohibited. As a result, financial transactions from trusted banks are not permitted under Sharia law. However, transactions/services such as transfer, authorized service fees, etc., are against the principle of Sharia law. Accordingly, they may be authorized to provide these services and the associated fees. In other words, a conventional bank is owned by a supermarket that sells Halal and Haram products. He sold pigs and wine in one part, and fruit and vegetables in other parts. In such a situation, it is clear that one should never conclude that all transactions in supermarkets violate Sharia law. In such a situation, a fair and equitable view is that some transactions in this supermarket are unacceptable, while others are permitted by law. The above argument clearly shows that conventional banking is not completely against Islam. Those who think that conventional banks are completely illegal and claim that they are not responsible for teaching law are wrong. Now that we know that some common gangs are licensed, we need not consider Sharia prosecutions for such deals.HistoryThe history of conventional banking can be divided into 4 eras.Pre-nationalization 1960sA large many private banks dominated the market. These banks were sponsored by large corporations who used them for their own financing needs. Their scope of activity was limited to large urban cities. Nationalization of 1970s All conventional banks were nationalized in 1974. Today, fifteen private banks have been consolidated into four nationalized commercial banks, namely Habib Bank Limited, United Bank Limited, Muslim Commercial Bank Limited and Allied Bank Limited. Rapid branch expansion was undertaken to improve coverage of banking services. Large, politically motivated loans have worsened the risk and income scenario of commercial banks. After nationalization in the 1980s, foreign banks consolidated their market position in.