Wealth Mobilisation by Islamic Banks: The Malaysian Case

Kamaruddin, Badrul Hisham

doi:10.3366/edinburgh/9780748621002.003.0004

Cited by 20 publications

(28 citation statements)

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“…Hence, Islamic banks have developed several financing instruments that are free from Riba (interest) being based instead on profit and loss sharing. However, Siddiqi (2002), Haron and Hisham (2003) and Hassan and Musa (2003) note that Islamic banking is a phenomena that is much more than the prohibition on interest. It is instead a system which aims to contribute to the fulfilment of socio-economic objectives and the establishment of social justice; it should also seek to establish a balance between earning and spending for the improvement of society as a whole (Haron, 1995; Al-Omar and Abdel-Haq, 1996).…”

Section: Literature Reviewmentioning

confidence: 99%

An Islamic banking perspective on consumers’ perception in Pakistan

Riaz

Khan

2017

QRFM

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Purpose-The aim of this research is to examine the perceptions of consumers on Islamic banking and finance in Pakistan. Islamic finance is an emerging phenomenon and its survival depends upon the availability, affordability and awareness. This thesis attempts to fill the gap in the literature by exploring the perceptions of consumers and bankers in an attempt to gain insights so that availability of products and awareness can be increased. Design/methodology/approach-The study uses a regression model by employing perception as a dependent variable and awareness, knowledge and religious motivation as independent variables. The primary data is collected using 150 questionnaires distributed amongst finance students in several universities and employees of Islamic banks in Khyber Pakhtunkhwa (KPK) province of Pakistan. Findings-The findings reveal that overall consumers' perception is positive about Islamic banking and finance in Pakistan. Statistical analysis shows that awareness, knowledge and religiosity level have positive influence on the perception of consumers about Islamic financing products and services in Pakistan. To improve the awareness and understanding, Islamic banks could make better marketing strategies and could increases their presence by mosque visits and conferences. A cooperation between the industry and scholars could help in more innovative products for the consumers. Implications-There has been a limited amount of work carried out on the perceptions of consumers about Islamic banking in Pakistan. The present study represents start of a larger context for examining Islamic banking practices in Pakistan. The findings of the study can be used as a reference in future research projects in the areas of perceptions and awareness. Originality/value-Little research has been conducted to study this problem from the perspectives of consumers and Islamic banking employees. Most research associated with Islamic banks fails to pay attention to these stakeholder groups in one study.

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Section: Literature Reviewmentioning

confidence: 99%

An Islamic banking perspective on consumers’ perception in Pakistan

Riaz

Khan

2017

QRFM

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“…Therefore, Islamic banking is much more than just refraining from charging interest and conforming to the legal technicalities and requirements on offering Islamic financial products. It is a system which aims at contributing to the fulfilment of the socio-economic objectives and the creation of a just society (Siddiqui, S.H., 2001;Haron and Hisham, 2003;Hassan and Musa, 2003). In the process of conducting business, Islamic banks seek to bring about a lasting balance between earning and spending in order to achieve a betterment for the whole community (Haron, 1995;Al-Omar and Abdel-Haq, 1996).…”

Section: Literature Review Objectives Of Islamic Bankingmentioning

confidence: 99%

Understanding the objectives of Islamic banking: a survey of stakeholders' perspectives

Dusuki

2008

International Journal of Islamic and Middle Eastern Finance and Management

156

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Purpose-The purpose of this paper is to survey the viewpoints of various stakeholder groups on the philosophy and objectives of Islamic banking, particularly in a dual banking environment, as in the case of Malaysia. Design/methodology/approach-The paper presents primary data collected by self-administered and postal questionnaires involving a sample of 1,500 respondents representing seven stakeholder groups, namely customers, depositors, local communities, Islamic banking managers, employees, banking regulatory officers and Shariah advisers. An exploratory factor analysis is employed to examine the respondents' perceptions towards various objectives of Islamic banking. Findings-This paper reveals that respondents regard Islamic banking as an institution that should uphold social objectives and promote Islamic values towards their staffs, clients and the general public. Other factors perceived to be important include contributing to the social welfare of the community, promoting sustainable development projects and alleviating poverty. Practical implications-The empirical evidence of this paper affects two aspects; first Islamic banks must not be solely profit-driven entities; rather they must aim at promoting Islamic norms and values to achieve the economic objectives as prescribed by Shariah (Islamic Law). Second, true success for Islamic banking participants depends on the extent to which they can integrate social goals with the mechanics of financial innovation. This research will be of interest to both incumbent and potential entrants into this niche market. Originality/value-The paper reports findings from the first nationwide survey of diverse stakeholder groups in the area of Islamic banking and finance.

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“…Such purported benefits have encouraged the British government to make particular efforts to support the industry, although the UK is far from unique amongst non-Islamic nations in seeing significant growth in the sector in recent years (Masood et al, 2009). 2 Siddiqi (2001), Haron and Hisham (2003) and Hassan and Musa (2003) characterise Islamic banking as a phenomenon that represents much more than the ubiquitous prohibition on interest (Riba). 3 Siddiqi (2001) and Ahmad and Hassan (2007) argue that Islamic banking should have as its central aim the creation of a harmonious, balanced and just society, encouraging the equal distribution of wealth while forbidding activities that may harm individuals.…”

Section: Introductionmentioning

confidence: 99%