Islamic banking has been developing and expanding all around the world for the past decades and it continues to develop at an accelerated pace in some countries in recent years. However, the development of Islamic banking is unevenly distributed across the countries. Most of the Islamic banks are located in the Middle East and North African regions. Despite of the huge Muslim populations, some countries like Indonesia and Pakistan are still having a small share of Islamic bank asset as compared to those of the MENA region. This situation raises a question of what actually contributes to the development of Islamic banking. A vast number of literatures with regards to the financial development have indeed suggested many possible determinants for the development of the banking sector. Yet, the studies which are solely dedicated to the development of Islamic banking sector are still limited ...