This research was aimed to examine the traditional dynamics in conventional and Islamic Banks in Pakistan. It established an empirical measurement of volatility persistence while using the EGARCH (Exponential Generalized Auto-Regressive Conditional Heteroscedasticity) model. The impact of monetary policy on volatility of dual banks is examined through T-GARCH (threshold Generalized Auto Regressive Conditional Heteroscedasticity) model. There were several interesting findings of the current study. First of all, the volatility showed that the asymmetry of good news have greater impact on the volatility as compared to the bad news. Further, the bad news also impacts on the volatility of conventional banks in contrast to the Islamic banks. Moreover, it was also found that in terms of shock, there is persistent level of volatility in conventional banks as compared to the Islamic banks. Hence, there is more resilient tendencies in Islamic as compared to the conventional banks, but the resilience level is heterogenous and dependent on the sample. So, it can be suggested by applying the industrial rules of Islamic bank, the conventional banks can be regulated effectively. At last, the significant findings were also observed for the effect of monetary policy on the volatility of Islamic and conventional banks being measured from the T GARCH model. It also shows that the interest rate for this is used as the monetary policy and it also effects the volatility of both Islamic and conventional banks. Supervisor:- Dr. Farhat Mahmood Co-Supervisor:- Dr. Arshad Hassan