Hawala is mainly distributed in Islamic dominated regions. Is it related to "Islamic banking"?
No, Hawala has developed independently of what we call Islamic banking today. Hawala comes from the Islamic culture, but there is also in other cultures, for example in China.
Islamic banking is characterized above all by compliance with Islamic rules: prohibition of interest, prohibition of speculation, prohibition of gambling, no investment in "non-Islamic" companies such as alcohol and tobacco producers. Islamic banks carry out normal transfers, issue regular credit cards. These are banks for ordinary customers who want to comply with these rules.
Hawala has nothing to do with that. This is a simple payment system, it has no ethical or religious claim. And it is traditionally not offered by banks, not even by Islamic ones.