Abstract:

The Islamic banking system was start in 1963 in Malaysia. But this banking system not success due to certain factors like awareness regarding Islamic banking system. Than new Islamic bank Dubi Islamic bank was established in 1975.today approximately 100 bank are operate without interest. But the market share of Islamic bank as compared to conventional bank is low. The reasons of this research is to check the impact of religion ,awareness regarding financial teaching of Islam, awareness regarding IB product and service ,advertising, reputation , networking on the perception of customers in Islamic banking system in Pakistan. For this purpose survey is used which consist of 150 Muslims respondent in different Islamic bank in Pakistan. Result of this study indicates that there is a significant perception criterion regarding Islamic banking. The most important factors which effect on the perception of customers in Islamic banking are religion, awareness regarding financial teaching of Islam, awareness regarding IB product and service, advertising, networking. The data is analyzed by using SPSS software version 16.0. Mostly respondent know about the IB product and service they are not used these product and service. mostly study indicate that there is need to educate the people about IB product and service and IBS are required to more work for the competition with conventional banking system in Pakistan. Key Words: Islamic Banking, Inflencing Factors, Perception, Customers.

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