...1.0 INTRODUCTION Perception is an important aspect to understand or predict the behaviors of customers in some situation, according to Sethi, 2002. Eagly and Chaiken, 1993 in their article said that general attitudes are relatively good predictors of general behavioral likelihoods. Furthermore, customer’s attitude toward a product or service is influenced by a match of the product or service user image with the customer’s self-concept . Islamic banking which started in 1983 in Malaysia, refers to a system of banking that complies with Islamic law which also known as Shariah law. The underlying principles that govern Islamic banking are mutual risk and profit sharing between parties and the assurance of fairness for all transactions based on an underlying business activity. It does not allow any transactions based on interest (riba), gambling (maisir) and speculative trading (gharar) at all cost. In terms of products and services, there are more than 40 Islamic financial products and services that may be offered by the banks using various Islamic concepts such as Mudharabah, Musyarakah, Murabahah, Al-Bai Bithaman Ajil, Al-Ijarah, Al-Takjiri, Qard Hasan, Al- Wakalah, Al-Kafalah and Wadiah. This study was stated the most perception of Islamic banking product among the Malaysian customer. As one of the important in service industry today, Islamic banking is no longer regarded only to fulfil the religious obligation of the Muslim. It is also how the Islamic banks want to market...
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...Bank Employees Perceptions on Islamic Banking Acceptance Abstract This research was conducted to investigate bank employee perceptions on Islamic banking acceptance. The questionnaires were distributed to bank employee at Maybank Islamic Wangsa Maju (Islamic bank) and Maybank Setapak (Islamic window) Kuala Lumpur. Interestingly, few of the bank employees possessed a relevant academic background or relevant experience in banking on this career. The bank employee also claimed that they had very limited knowledge in this area prior to working with the banks; thus, the issue of the availability of well-trained and skilled employees must be addressed critically by the government, industry players and educationists for the sustainable growth of Islamic banking in Malaysia, and to meet the target set for the year 2011. Keywords: Bank Employees perceptions, Islamic Banking, Product & Service, Training & Experience 1.0 INTRODUCTION 1.1 Background of study In 1970, Islamic banking was almost unknown and considered to be wishful thinking. By the early years of the twenty-first century, however, Islamic banking the deniable truth has emerged, for it is growing at a steady pace. The size of the industry, which amounted to a few hundred thousand dollars in 1975, had reached billions of dollars by 2004. The value of Shari’ah-compliant accounts worldwide is estimated between US$200 billion and US$500 billion and is growing at an average annual rate of 10-15 per cent. It is predicted...
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...People Perception of Islamic Banking Muhammad Sohail Bhatti Student MS Islamic Banking & Finance University of Management & Technology Abstract: This research was conducted to gauge the perception of general public about Islamic Banking in Pakistan. Questionnaires were distributed to customers of Islamic Banking and conventional banking. The results revealed that most of the people do not have adequate knowledge of the concepts of Islamic Banking. Some of the participants did not even know that “Riba” is forbidden in Islam. Less awareness about the Islamic banking concepts can be the main cause of negative perception among general public. This study also revealed that many people think that Islamic banks have not played their proper role in creating the awareness and knowledge about the concepts and working of Islamic banking. The study might help the Islamic Banks to reconsider their marketing strategies so that the negative perceptions of the general public may be changed to a positive one. Key Words: Islamic Banking, Perception Introduction: Islamic Banking is relatively new concept as compared to conventional banking. The history of conventional banking dates back to about two hundred years. Whereas Islamic banking is only in its infancy stage and started only about 17 years ago. People are so used to the conventional side of the banking that it is a little hard for them to understand the Islamic Banking concepts and the working and services offered by them...
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...influence services quality in the Islamic banking system in Malaysia Student name: Tai Yen Ying Doris Student ID: Scm-014993 Course: Bachelor In Business Management Content Pages 1. Cover pages 1 2. Content 2 3. Abstract 3 4. 1.0 Introduction 3 5. 1.1 Research Background 3 6. 1.2 Problem statement 5 7. 1.3 Research Question 5 8. 1.4 Research objectives 6 9. 1.5 Significance of study 6 10. 1.6 Scope of study 7 11. 1.7 Dissertation Outline 8 12. 2.1 Introduction 8 13. 2.2 Defining topic 9 14. 2.3 Defining element in the framework 15. 2.3.1 Customer satisfaction 12 16. 2.3.2 Customer loyalty 14 17. 2.3.3 Customer perception 15 18. 2.3.4 Switching cost 16 19. 2.4 Theories 17 20. 2.5 Proposed Framework 19 21. 3.1 Introduction 20 22. 3.2 Research hypothesis 20 23. 3.3Research Equation 20 24. 3.4 Operational Definition 21 25. 3.5 Measurement 22 26. 3.6 Data collection 25 27. 3.7 Data analysis 27 28. Conclusion 28 29. References 29 Abstract This research is to determine the factors explaining the service quality in the Islamic banking system in Malaysia. Data collection...
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...CHAPTER 1 INTRODUCTION 1.1 The Introductory Paragraph Islamic banking refers to a system of banking that complies with Islamic law also known as Shariah law. The underlying principles that govern Islamic banking are mutual risk and profit sharing between parties, the assurance of fairness for all and that transaction are based on an underlying business activity or asset. The Islamic banking system has gained momentum worldwide. There are now 16 Islamic banks and financial institution operating in Malaysia. The popularity of the Islamic banking system is not limited to the Islamic bank only. The conventional system also interested in Islamic banking system For instance, CIMB has established CIMB Islamic bank that operates in accordance with Islamic Shari’ah principles. Islamic banks faced with strong competition not only from Islamic bank but also from conventional banks. The Islamic banking system is different from the conventional banking system but have some similarities between the two. For example, an Islamic bank conduct s its activities in accordance with the Islamic Shari’ah principle that strictly prohibit any payment or receipt of interest. However, the Islamic bank can offer product and service which are similarity by conventional bank. When Islamic banks or conventional banks offered any new product or service, the successful depends on the customer satisfaction level towards that product or service. In this competition, they must have to give extremely high...
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...8th International Conference on Islamic Economics and Finance Prospects and Problems of Islamic Banking from Bank’s Perspective: A Study of Bangladesh Dr. Muhammad Z Mamun 1 This paper focuses on the prospect and growth potentials of Islamic banks in Bangladesh as perceived by Islamic and conventional bankers. The study noted that there is a high demand for interest-free banking services from a segment of people in Bangladesh who have a strong desire to abide by the rules and principals set by Shariah. Along with religious requirement, economic exigencies provide a new outlook to the role of banking in promoting investment/ productive activities, influencing distribution of income and adding stability to the economy. The Islamic banking sector is, however, criticized on several grounds by the Conventional bankers. The banks are believed not to apply the rules of Shariah completely. Islamic banks are said to include interest in their dealings to compete effectively with the Conventional banks. Moreover, conventional banks offering Islamic banking as a parallel service are thought to do so only to add to their profitability, by attracting people who value the Shariah based system by enjoying the advantages of the special treatments from the Central bank. According to the survey, suitable and supportive legal framework would facilitate better growth of this sector. Moreover, the lack of an inter-bank money market and sufficient supportive and link institutions in the sector, act...
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...four core areas of profitability, liquidity, credit risk and solvency through simple sectoral averages for both streams of banking. Table 1: Financial Performance of Islamic Vs Conventional Banking |PPERFORMANCE MEASURES |CONVENTIONAL BANKS | | | | | |ISLAMIC BANKS |COMMENTS | |Profitability | | | |Conventional Banking is dominating in | | |profitability | | | | | | | | |Conventional banking is dominating in liquidity | | ...
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...Benefits The idea of Islamic banking was initiated and brought up by some economists who were conscious about socio economic development of Muslim nations based on Islamic principles. It was based on noble vision and objective of Islamic banking base on profit and loses sharing principle. The foundation of Islamic banking theory that they proposed was based on mudaraba and musharakah contracts as mechanism to operate Islamic banking system. “The early contributions on the theory of Islamic banking were only discussed as part of the subject in Islamic economic system. For example, the book by Qureshi on Islam and the Theory of Interest (Qureshi (l946)) which looked upon banking as a social service that should be sponsored by the government like other public institutions such as public health and education.2 His view was based on the point that the bank could neither pay any interest to account holders nor charge any interest on loans advanced. He also suggests the possibility for both Islamic banks and entrepreneur to create a partnership. No mention was made of profit-sharing.” Other economists were come up with different ideas at earlier stages such “the principle of mudarabah was appealed systematically by Uzair (l955). His main contribution lay in suggesting mudarabah as the main premise for 'interest less banking'. However, his argument that the Islamic bank should not make any capital investment with its own deposits rendered...
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...BRAND IMAGE OF ISLAMIC BANKS SUBMITTED BY TARIQ JALEES LT.COL(RETD) RAZA KAMAL ASSISTANT PROFESSOR DIRECTOR ACADEMICS COLLEGE OF MANAGEMENT SCIENCE PAF-KARACHI INSTITUTE OF ECONOMIC AND TECHNOLOGY KORANGI CREEK , KARACHI-75190 WWW.PAFKIET.EDU.PK UAN 111-723-733 TELEPHONE 5091114-7 FAX 92215091118 RESIDENCE ADDRESS OF TARIQ JALEES 87-Q, BLOCK-2, PECHS, KARACHI, RESIDENCE TELEPHONE 9221-4556308 MOBILE 0300-82007019 EMAL TARIQUEJ2004@YAHOO.COM TARIQJ@PAFKIET.EDU.PK 1 BRAND IMAGE OF ISLAMIC BANKS 1.0.0 Introduction What is Islamic banking? What is brand Image? Both the topics independently have been researched, discussed and deliberated so many times that the readers generally don’t fancy reading them. However, there is not a single research to best of our knowledge wherein researchers may have combined both the diversified topics. Lack of research on “brand image of Islamic bank” was one of the major motivator for undertaking this research. Thus the objective of this paper was to measure the brand image of Islamic banks, and develop the profile of the customers of Islamic banks. 1.1.0 Literature Survey In order to develop the conceptual background, the literature review has been structured as follows: 1.1.2 A brief over view on Islamic banking and literature on consumer behavior, characteristics and perception towards Shariah banks A brief overview of branding imaging concept An Overview Islamic Banking There are about 270 Islamic banks around the world (including subsidiaries...
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...paper focuses on the prospect and growth potentials of Islamic banks in Bangladesh as perceived by Islamic and conventional bankers. The study noted that there is a high demand for interest-free banking services from a segment of people in Bangladesh who have a strong desire to abide by the rules and principals set by Shariah. Along with religious requirement, economic exigencies provide a new outlook to the role of banking in promoting investment/ productive activities, influencing distribution of income and adding stability to the economy. The Islamic banking sector is, however, criticized on several grounds by the Conventional bankers. The banks are believed not to apply the rules of Shariah completely. Islamic banks are said to include interest in their dealings to compete effectively with the Conventional banks. Moreover, conventional banks offering Islamic banking as a parallel service are thought to do so only to add to their profitability, by attracting people who value the Shariah based system by enjoying the advantages of the special treatments from the Central bank. According to the survey, suitable and supportive legal framework would facilitate better growth of this sector. Moreover, the lack of an inter-bank money market and sufficient supportive and link institutions in the sector, act as impediments to growth of Islamic banking. Also, banks perceive the availability of training and education on Islamic banking to be inadequate in Bangladesh. To deliver superior services...
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...Comparative Performance Study of Conventional and Islamic Banking in Bangladesh Course Title: THEORY AND PRACTICES OF BANKING IN BANGLADESH Course Code: FBK 312 Submitted To: Md. Nur Nabi Assistant Professor Department of Finance and Banking Faculty of Business Administration and Management Patuakhali Science and Technology University Dumki, Patuakhali- 8602 Submitted by: Group: C (Level: 3, Semester: I) Session: 2012-2013 Faculty of Business Administration and Management Patuakhali Science and Technology University Dumki, Patuakhali- 8602 Date of Submission: 09th May 2015 ------------------------------------------------- Roll No | Registration No | Name of the Students | Signature | 1203051 | 03596 | Nusrat Jahan Rupa | | 1203053 | 03598 | Nusrat Yesmin | | 1203054 | 03599 | Nisath Salsabil Urmi | | 1203056 | 03601 | Mehedi Hasan | | 1203057 | 03602 | Hasan Shahria Nayeem | | 1203060 | 03605 | Khondokar Tanveer Ahsan | | 1203061 | 03606 | Sume Akter | | 1203062 | 03607 | Rased Amer Sohag | | 1203065 | 03610 | Nusrat Jahan Pinki | | 1203067 | 03612 | Rasel Miah | | ------------------------------------------------- Group Member Details ------------------------------------------------- ------------------------------------------------- ATTENDANCE REPORT 1) Level : 3 2) Semester : I 3) Course Code : FBK-312 4) Course Title : THEORY AND PRACTICES OF BANKING IN BANGLADESH 5) Date Of Presentation : 9th May...
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...All you need to do is to answer all the questions for the different discussions (200 words each) Topic 1: What factors affect the consumer's perceptions of fast food and its services? Summary: The two studies by M.K. Brady et al and Kim et al are concerned with the same question: what factors affect the consumer’s perceptions of fast food and its services? But while Kim et al. focuses on American college students to find out what factors that segment finds favourable in a fast-food service, M.K. Brady et al takes their study to the international level to find out how different cultural values can affect the consumer’s behavioural intentions relative to the fast-food industry and its services. Both articles agree that the majority of America customers prefer to trade-off between quality of services and expenditure required (expense-conscious). The American consumer tends to judge consumption of goods and services with a ‘neutral’ and logically based mindset; always asking the question of “is it worth my money?” Kim et al claims that due to relatively inexpensive, quick and convenient service, fast-food is becoming more and more popular among college students in North America. How could restaurants attract this emerging market? Further discussing in particular the college student market, and selecting Wendy’s, Burger King and McDonald’s as target examples will figure out the way to attract college students in fast-food services restaurant. Several factors are taken into consideration...
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...Loyalty: Perception of Muslim Customer Sharia Banking Asia-Pacific Management and Business Application 1(1) 69 – 80 ©UB 2012 University of Brawijaya Malang, Indonesia http://apmba.ub.ac.id Sunaryoa* Zakaria Baharib a Management Department, Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia; b Center for Islamic Development Management Studies, School of Social Science, Universiti Sains Malaysia, Malaysia Abstract The majority of the Indonesian population is Muslim, in which the share of Sharia Banking is only three (3) percent of the total banking market share in the country. This indicates a low participation, possibly leading to a negative perception on ethic reputation and low awareness among the Muslim communities in using sharia banking products and services. The objectives of this paper are to analyze the influence of sharia banking organization ethics reputation on Muslims customer loyalty and to analyze the role of satisfaction as a mediating effect on sharia banking organization ethics reputation on Muslims customer loyalty for the sharia banking products and services. Survey with 315 respondents in the city of Malang, Indonesia was conducted to gather information to further understand the situation, to answer the questions raised and to meet the study objectives. Purposive sampling was used to select the relevant respondents. The Structural Equation Model (SEM) is used to analyze the direct and indirect relationship between sharia banking organization...
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...Responsibility in Islamic Banks of Bangladesh Quazi Sagota Samina* The evolution of Shariah based profit –loss sharing centered Islamic banking, worldwide has changed the thought of financial institutions even of the developed countries in the west. On the other hand the recognition of importance of corporate social activities in the business organizations as well as in financial institutions has accelerated the significance of Islamic banks as in Islam these CSR practice have been emphasized in different ways. Likewise the Islamic financial institutions all over the world, Islamic banks in Bangladesh are also being engaged in various social activities as a part of their responsibilities. In this study it has been tried to find out whether the Islamic Banks of Bangladesh are adhering to the prescribed forms of the CSR activities or not. This paper is mainly designed based on the CSR forms to be followed by Islamic banks as has been prescribed by Farook (2007) in his study “On Corporate Social Responsibility of Islamic Financial Institutions” under the light of Islamic Shariah. The research found compliance to the mandatory forms by the 6 full fledged sample Islamic banks in Bangladesh whereas variety in involvement in recommended forms of CSR activities by considering the scenario of banks from 2007 to 2011. The study also finds a strong positive correlation between CSR expenditure and sample banks’ deposit, loan and profitability. Keyword: Corporate social responsibility, Islamic banking...
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...Shahjalal Islami Bank Limited: (SJIBL) is a modern commercial bank governed by the principles of Islamic Shariah, which is committed to implement and materialize the economic and financial principles of Islam in the banking sector. Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operation in accordance with principle of Islamic Shariah on the 10th May 2001 under the Bank Companies Act, 1991. During last eleven years SJIBL has diversified its service coverage by opening new branches at different strategically important locations across the country offering various service products both investment & deposit. Islamic Banking, in essence, is not only INTEREST-FREE banking business, it carries deal wise business product thereby generating real income and thus boosting GDP of the economy. Board of Directors enjoys high credential in the business arena of the country, Management Team is strong and supportive equipped with excellent professional knowledge under leadership of a veteran Banker Mr. Md. Abdur Rahman Sarker. Corporate Information: * Name of the Company : Shahjalal Islamic Bank Limited * Legal Form : A public limited company incorporated in Bangladesh on 1st April 2001 under the companies Act 1994 and listed in Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. * Commencement of Business: 10th May 2001 * Head Office: Uday Sanz, Plot No. SE (A) 2/B Gulshan South Avenue, Gulshan - 1, Dhaka-1212 Board of Directors: ...
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