A comparison of conventional versus Islamic banking customers attitudes and judgment

Said, Laila Refiana; Bilal, Kashif; Aziz, Shahab; Gul, Aaiza; Shabbir, Malik Shahzad; Zamir, Aysha; Abro, Hummera

doi:10.1057/s41264-021-00113-0

Cited by 16 publications

(13 citation statements)

References 27 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Among the factors that influence customer attitudes, Islamic values are crucial for Islamic banking services [51][52][53]. This is an important determinant of both idealism and relativism, shaping consumers' ethical beliefs and practices [54][55][56]. This study highlights how the customers mediate their relationships between Islamic values, literacy on Islamic finance, ethical organisation, and reputation on one hand, and their behavioural intention to use Islamic banking services on the other hand [57][58][59].…”

Section: Mediating Effect Of Attitudementioning

confidence: 99%

“…Alharbi et al [31] highlighted that customers' greater knowledge about Islamic financial literacy can influence their behavioural intention to use Islamic banking services. Georgiadou and Nickerson [54] examined customer perception of Islamic banks in the United Arab Emirates and indicated that a higher perception of customer attitudes about ethical confidence and trust in the organisation can increase a customer's behavioural intention to use Islamic banking services. Similarly, Muflih [45] indicated that the reputation of an organisation can motivate a customer's behavioural intention to use Islamic banking services.…”

Section: Mediating Effect Of Attitudementioning

confidence: 99%

See 1 more Smart Citation

What Factors Influence Customer Attitudes and Mindsets towards the Use of Services and Products of Islamic Banks in Bangladesh?

et al. 2022

View full text Add to dashboard Cite

This empirical paper aims at measuring customer attitudes concerning Islamic banking services and how they influence their behavioural intentions to utilise them. Islamic banking has been a fast-growing sector, offering products and services according to Sharia law. Despite being the preferred choice of banking, there is a high percentage of Muslim customers who have shifted from conventional to Islamic banking. Hence, this study aims to examine factors that influence them towards the use of Islamic banking. This is cross-sectional research, where data were collected using questionnaires. A total of 490 questionnaires were received back from adult individuals who were clients of Islamic banks. The data were analyzed using the partial least squares (PLS) method. The findings indicate that ethical organisation, Islamic values, and reputation significantly impact attitudes, whereas financial literacy has no significant impact on them. Attitude is strongly related to the behavioural intention to engage in Islamic banking services. The results also reveal that attitudes mediate the effect of Islamic values, ethical organisation, and reputation on the behavioural intention to engage in Islamic banking services, but Islamic financial literacy is not associated with customers’ behavioural mindset to enjoy such services. This study provides an example of initial empirical evidence from a Muslim majority country like Bangladesh on the relationship between Islamic values, ethical organization, Islamic financial literacy, and reputation and attitudes, which in turn lead to customers’ behavioural intentions to engage in services and products of Islamic banks.

show abstract

Section: Mediating Effect Of Attitudementioning

confidence: 99%

Section: Mediating Effect Of Attitudementioning

confidence: 99%

What Factors Influence Customer Attitudes and Mindsets towards the Use of Services and Products of Islamic Banks in Bangladesh?

et al. 2022

View full text Add to dashboard Cite

show abstract

“…Several studies such as (Butt et al, 2022 ; Shabbir, 2022 ; Said et al, 2021 ; Ramos et al, 2021 ; Shahzadi et al, 2021 ; Ehsan et al, 2021 ; Shabbir & Wisdom, 2020 ) confirm a positive causal relationship between monetary supply and banks returns. Molyneux et al ( 2022 ) examine the relationship between bank marginal funding constraints and stock liquidity.…”

Section: Literature Reviewmentioning

confidence: 98%

Can money supply endogeneity influence bank stock returns? A case study of South Asian economies

Liu

Bashir²,

Abdalla

et al. 2022

Environ Dev Sustain

View full text Add to dashboard Cite

This study tests the Post-Keynesian theory regarding bank stock returns and money supply endogeneity in the context of South Asian countries. This study uses panel data set from different sources over twenty-eight (28) years. The research uses different econometric techniques before switching to the generalized method of moments (GMM). The empirical results indicate a significant positive effect of net interest rate margins on bank loans in South Asian countries, whereas a positive relationship exists between foreign to local interest rates and the money supply. The findings depict that positive associations exist between inflation and money supply of banks, and between the money supply and bank stock returns. More specifically, the GMM results show that the money supply has positively affected the stock prices of banks suggesting strong policies for the stakeholders of these economies for the sake of economic growth and sustainable development.

show abstract

“…Zaby and Pohl (2019) have developed a holistic approach to measure and manage reputation risk to be implemented in banks in practice. Another pioneering study by Altaf et al (2021), Said et al (2021) and Miklaszewska and Kil (2016) attempts to calculate reputational risk by using SRS, as a proxy for reputational risk which is measured through banks' credit ratings, stock returns and deposit growth. A bank's credit rating expresses credit rating agencies' forward-looking opinion about the creditworthiness of the obligor (bank) capacity and willingness to meet its financial obligations in full and on time (Ratings, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Financial risks and performance of conventional and Islamic banks: do reputational risk matters?

Butt

Ayub

Latif

et al. 2022

JIABR

Self Cite

View full text Add to dashboard Cite

Purpose The purpose of this paper is to shed light on the reputational risk, which is elusive and difficult to measure due to the lack of its conclusive definition. Literature supports the notion that financial risks may translate into reputational risks that pose threat to bank performance. However, empirical investigations in this context are still at their nascent stage. Design/methodology/approach This study has used a panel dataset for the sample of 24 conventional and Islamic banks regarding the period 2007–2017 by using a structural equation model. Findings The results of this study show that reputational risk partially mediates the relationship between financial risks and the performance of conventional banks. However, for Islamic banks, the reputational risk remains insignificant as a mediator. This study provides significant implications to risk managers in banks, regulators and academics to understand the role of reputational risk linked to financial risks for the improvement of bank performance. Originality/value This study aims to add to the literature by measuring reputational risk through the shareholders reputational score index, which is used as a mediator to determine whether financial risks of banks affect the performance of conventional and Islamic banks in Pakistan.

show abstract

A comparison of conventional versus Islamic banking customers attitudes and judgment

Cited by 16 publications

References 27 publications

What Factors Influence Customer Attitudes and Mindsets towards the Use of Services and Products of Islamic Banks in Bangladesh?

What Factors Influence Customer Attitudes and Mindsets towards the Use of Services and Products of Islamic Banks in Bangladesh?

Can money supply endogeneity influence bank stock returns? A case study of South Asian economies

Financial risks and performance of conventional and Islamic banks: do reputational risk matters?

Contact Info

Product

Resources

About