IndexHistoryPre-nationalization of 1960sNationalization of 1970sPost 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. Thanks to experience and product selection, traditional banks are more advanced. Conventional banking is based on a full-fledged intermediary model that lends borrowers to suppliers and then loans to businesses or individuals. They provide marginal interest rates between lending rates and loans. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay They also provide banking services, such as credit cards and guarantees. They derive part of their profits from economic budgets received through demand deposits. Conventional banks are prohibited from trading and their assets are severely limited to a small portion of their net worth. For conventional 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 in the rental section. Of course, interest-based transactions are prohibited and completely prohibited. As a result, financial transactions from trusted banks are not authorized by Shariah. However, transactions/services such as transfers, authorized service charges, etc. they are against the principle of sharia. Accordingly, they may be permitted to provide these services and related fees. In other words, a conventional bank belongs to a supermarket that sells Halal and Haram products. He sold pigs and wine in one part, as well as 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 point of view is that some transactions in this supermarket are unacceptable, while others are permitted by law. The above argument clearly shows that a conventional bank is not entirely un-Islamic. Anyone who thinks that conventional banks are completely illegal and says that they are not responsible for teaching the law is wrong. Now that we know that some common bands are permissible, we do not need to consider sharia lawsuits for such arrangements. History The history of conventional banks can be divided into 4 eras. Pre-nationalization of the 1960s. A large number of private banks dominated the market. These banks were sponsored by large business houses who used these banks for their financing needs. Their scope of activity was limited to major urban cities. Nationalization of 1970s All conventional banks were nationalized in 1974. Now fifteen private banks were consolidated into four nationalized commercial banks: Habib Bank Limited, United bank Limited, Muslim commercial bank Limited, Allied bank Limited. Rapid expansion of branches has been undertaken to improve coverage of banking services. Heavy politically motivated lending has aggravated the risk and profit scenario of commercial banks. After the nationalization of the 1980s, foreign banks consolidated their market position to the detriment of the inefficient nationalized commercial banks. Profit and loss sharing system was introduced. The financial market expanded with the entry of.