Customer perceptions towards Islamic financing : An comparative studies between Islamic finance and conventional loans

Customer perceptions towards Islamic financing : An comparative studies between Islamic finance and conventional loans

The expansion of Islamic banking industry the financial markets of the world has made this newly born industry a ground reality. Islamic banking industry have shown the current global financial crisis in entire market. Islamic banking is a new phenomenon that has taken many observers by surprise. Th...

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Main Author: Navanithan, Sachithanandam
Format: Thesis
Language:eng
eng
Published: 2014
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/4140/1/s809145.pdf
https://etd.uum.edu.my/4140/13/s809145_abstract.pdf
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id my-uum-etd.4140
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Md. Hussain, Muhammad Nasri
topic HG Finance
spellingShingle HG Finance
Navanithan, Sachithanandam
Customer perceptions towards Islamic financing : An comparative studies between Islamic finance and conventional loans
description The expansion of Islamic banking industry the financial markets of the world has made this newly born industry a ground reality. Islamic banking industry have shown the current global financial crisis in entire market. Islamic banking is a new phenomenon that has taken many observers by surprise. The speed with Islamic banks have sprung up and the rate at which they have progressed make it worthwhile to study them systematically. The purpose of this paper is to examine the main factors that motivate customers to deal with Islamic banks particularly in a dual banking environment. A discussion on factors relating to how Shariah complaints and Islamic value initiatives as part of potential customers' banking selection criteria is also included. Islamic Banking and Finance (IBF) involves wider ethical and moral issues than simply 'interest-free' transactions. Its advocates argue that these make it more economically efficient than conventional banking and promote greater economic equity and justice. To what extent. then, do actual Islamic Banking practices live up to the ideal, and how different are they from conventional banking? A preliminary investigation shows that, three decades after its introduction, there remain substantial divergences between IBF's ideals and its practices, and much of IBF still remains functionally indistinguishable from conventional banking. This runs counter to claims by IBF advocates that it would rapidly differentiate itself from conventional banking. However, despite not providing an alternative to conventional banking and finance. IBF does strengthen a distinctly Islamic identity by providing the appropriate Islamic terminology for the factor of conventional financial transactions.
format Thesis
qualification_name masters
qualification_level Master's degree
author Navanithan, Sachithanandam
author_facet Navanithan, Sachithanandam
author_sort Navanithan, Sachithanandam
title Customer perceptions towards Islamic financing : An comparative studies between Islamic finance and conventional loans
title_short Customer perceptions towards Islamic financing : An comparative studies between Islamic finance and conventional loans
title_full Customer perceptions towards Islamic financing : An comparative studies between Islamic finance and conventional loans
title_fullStr Customer perceptions towards Islamic financing : An comparative studies between Islamic finance and conventional loans
title_full_unstemmed Customer perceptions towards Islamic financing : An comparative studies between Islamic finance and conventional loans
title_sort customer perceptions towards islamic financing : an comparative studies between islamic finance and conventional loans
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2014
url https://etd.uum.edu.my/4140/1/s809145.pdf
https://etd.uum.edu.my/4140/13/s809145_abstract.pdf
_version_ 1747827686641762304
spelling my-uum-etd.41402022-08-03T02:06:35Z Customer perceptions towards Islamic financing : An comparative studies between Islamic finance and conventional loans 2014-04 Navanithan, Sachithanandam Md. Hussain, Muhammad Nasri Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance The expansion of Islamic banking industry the financial markets of the world has made this newly born industry a ground reality. Islamic banking industry have shown the current global financial crisis in entire market. Islamic banking is a new phenomenon that has taken many observers by surprise. The speed with Islamic banks have sprung up and the rate at which they have progressed make it worthwhile to study them systematically. The purpose of this paper is to examine the main factors that motivate customers to deal with Islamic banks particularly in a dual banking environment. A discussion on factors relating to how Shariah complaints and Islamic value initiatives as part of potential customers' banking selection criteria is also included. Islamic Banking and Finance (IBF) involves wider ethical and moral issues than simply 'interest-free' transactions. Its advocates argue that these make it more economically efficient than conventional banking and promote greater economic equity and justice. To what extent. then, do actual Islamic Banking practices live up to the ideal, and how different are they from conventional banking? A preliminary investigation shows that, three decades after its introduction, there remain substantial divergences between IBF's ideals and its practices, and much of IBF still remains functionally indistinguishable from conventional banking. This runs counter to claims by IBF advocates that it would rapidly differentiate itself from conventional banking. However, despite not providing an alternative to conventional banking and finance. IBF does strengthen a distinctly Islamic identity by providing the appropriate Islamic terminology for the factor of conventional financial transactions. 2014-04 Thesis https://etd.uum.edu.my/4140/ https://etd.uum.edu.my/4140/1/s809145.pdf text eng public https://etd.uum.edu.my/4140/13/s809145_abstract.pdf text eng public masters masters Universiti Utara Malaysia AbdulQaici, 0. and 0. Lynn. 2001. Adopting and measuring customer Service Quality (SQ) in lslamic Banks: A case study in Kuwait Finance House. Int. J. lslamic Financ. Servic., 3: 1-26. Ahmad. N & Haron. S. (1998) The Existence of Conventional Banking Profitability Theories in Islamic Banking System. Sintok: School of Management. Universiti Utara Malaysia. Ahmad, N. & Haron. S. (2000). Perceptions of Malaysian Corporate Customers towards Islamic Banking Products & Services. International Journal of Islamic Financial Services, Volume 3, Number 4. AlKhathlan, K. (2010), "Are Saudi Banks Efficient? Evidence Using Data Envelopment Analysis (DEA)" International Journal of Economics and Finance. Alvi, Shafiq (2010) "Two Paths to Development: Capitalist vs. Islamic Approach" in Islamic Banking and Finance. Vol. 11, (eds) Al-Roubaie, A. and Alvi, S., Routledge. Ariff, M. (1988). Islamic Banking. University of Malaya, Asian-Pacific Economic Literature, Vol. 2, No. 2, pp. 46-62. Chapra, MU (2010) 'Islamic Economics: What It is and How It Developed'. Erol. C. and El.B. Radi, 1989. Attitude, behavior and patronage factors of bank customers towards lslamic Banks. Int. J. Bank Market., 7. Halim, A & Azmin, N. (2008) A Study on lslamic Banking Education and Strategy for the New Millenium - Malaysian Experience. International Journal of Islamic Financial Services Vol. 2. Hassan, M.K. and Bashir, A.H.M. (2003) "Determinants of Islamic Banking Profitability." International Seminar on Islamic Wealth Creation. University of Durham, UK, 7-9 July. Hassan. M & Dridi. J. (2010) The Effect of the Global Crisis on Islamic and Conventional Banks: A comparative Study. International Research Journal of Finance and Economics, No. 24. Ishrat Husain (2005). "Banking sector reforms in Pakistan." Reproduced from Blue Chip- The Business People's Magazine. January. Kamal. N.,J. Ahmad and A.K. Khalid. 1999. Islamic Banking: A study of customer satisfaction and preferences in Jordan. Int. J. Bank Market., 17: 135-150. Nethercott, Craig R. and Eisenberg, David M. (eds.) (2012) lslamic Finance: Law and Practice, Oxford University Press. Saleh, A.S. and Z. Rami (2006) "Islamic Banking Performance in the Middle East: A Case Study of Jordan." Working Paper 06-21, Department of Economics, University of Wollongong. Salman, Syed Ali (2004). "Islamic Modes of Finance and Associated Liquidity Risks." Conference on Monetary Sector in Iran: Strtucture, Performance und Challenging Issues, Tehran. Yousuff, R. and K.N.Md. Azurah, 2006. Selection factors of Islamic Banking between Bank Islam Malaysia berhad and conventional banks amongst public servants in Kotakinabalu. Proceeding of the Annual Conference on Malaysian Finance Associations, May 8-9, pp: 315-329. Zomerdijk, L.G., and Voss C.A., (2010), "Service Design for Experience-Centric Services". Journal of Service Research, 13(1) 67-82.

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