عنوان

Factors Influencing Consumers' Financial Transactions in Islamic Banks Compared with Conventional Banks:

شماره

LA107068

زبان متن نوشتاري يا گفتاري و مانند آن

انگلیسی

عنوان اصلي

Factors Influencing Consumers' Financial Transactions in Islamic Banks Compared with Conventional Banks:

نام عام مواد

[Article]

ساير اطلاعات عنواني

Empirical Evidence from Selected Middle-East Countries with a Dual Banking System

نام نخستين پديدآور

Aye Mengistu Alemu

محل نشرو پخش و غیره

Leiden

نام ناشر، پخش کننده و غيره

Brill

متن يادداشت

Despite various evidences that show Islamic banking has gained popularity even by non-Muslim consumers and businesses in many parts of the world, there is still a general misconception that consumer's choice for Islamic banking is only influenced by religious obligations and thus it is just a Muslim-only affair. Yet, our knowledge of consumer motivations for choosing Islamic versus conventional banking services is modest and the research to date is limited and ambiguous on these key issues. Therefore, this study conducts a two-step empirical analyses and first identifies the factors influencing customer's decision whether to choose Islamic or conventional banking using Linear Probability Model (LPM) and Tobit estimation method, and as a second step, it investigates the main attributing factors to consumers overall level of satisfaction with the services provided by Islamic banks compared to conventional banks using ordinal-logistic regression model. The study was based on a randomly selected 322 bank customers from Bahrain, Jordan, and UAE. The study confirms that although religious factors such as Shari'a compliance are important, other non-religious factors including better quality of services and information disclosure are also playing crucial roles for the growing consumers' demand for Islamic banking. Nevertheless; factors such as better rate of return, accessibility to credit, and SMS banking are found to be the main significant determinants of consumers' choice and satisfaction with the services provided by conventional banks. Overall, the recent experience especially after the financial crisis of 2008 demonstrates that Islamic banking system can be part of the solution since it is mainly based on stronger regulatory system. Despite various evidences that show Islamic banking has gained popularity even by non-Muslim consumers and businesses in many parts of the world, there is still a general misconception that consumer's choice for Islamic banking is only influenced by religious obligations and thus it is just a Muslim-only affair. Yet, our knowledge of consumer motivations for choosing Islamic versus conventional banking services is modest and the research to date is limited and ambiguous on these key issues. Therefore, this study conducts a two-step empirical analyses and first identifies the factors influencing customer's decision whether to choose Islamic or conventional banking using Linear Probability Model (LPM) and Tobit estimation method, and as a second step, it investigates the main attributing factors to consumers overall level of satisfaction with the services provided by Islamic banks compared to conventional banks using ordinal-logistic regression model. The study was based on a randomly selected 322 bank customers from Bahrain, Jordan, and UAE. The study confirms that although religious factors such as Shari'a compliance are important, other non-religious factors including better quality of services and information disclosure are also playing crucial roles for the growing consumers' demand for Islamic banking. Nevertheless; factors such as better rate of return, accessibility to credit, and SMS banking are found to be the main significant determinants of consumers' choice and satisfaction with the services provided by conventional banks. Overall, the recent experience especially after the financial crisis of 2008 demonstrates that Islamic banking system can be part of the solution since it is mainly based on stronger regulatory system.

تاريخ نشر

2012

توصيف ظاهري

444-465

عنوان

African and Asian Studies

شماره جلد

11/4

شماره استاندارد بين المللي پياييندها

1569-2108

اصطلاح موضوعی

Consumers' Choice

اصطلاح موضوعی

Consumers' Satisfaction

اصطلاح موضوعی

Conventional Banking

اصطلاح موضوعی

Dual Banking System

اصطلاح موضوعی

Islamic Banking

اصطلاح موضوعی

Middle-East Countries

مستند نام اشخاص تاييد نشده

Aye Mengistu Alemu

شماره بازیابی

10.1163/15692108-12341241

نام الکترونيکي

فرمت انتشار

p

نوع ماده

[Article]

کد کاربرگه

275578

سطح دسترسي

a

تكميل شده

Y