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Who Patronizes Islamic Banks in Indonesia? (Abduh M., Omar M. A.)

Islamic Banking

Abstract After the fatwa that prohibits bank interest was announced by the Ulama Council of Indonesia (MUI) at the end of year 2003, many Muslim bank’s customers shift their deposits into Islamic banks. However, the number of customers and the amount of money shifted to Islamic banks are not significant compared to those who choose to remain. The purpose of this paper is to investigate the effects of religiosity, perception towards banks and demographic variables of customers on bank selection using the forward stepwise method of binary logistic. The results suggest that individual, who puts shariah issue as his/her first consideration in patronizing a particular bank, recognizes the fatwa announced by MUI on the impermissibility of bank interest, and puts reason of safety of fund during the financial crisis, has greater possibility to patronize Islamic banks in Indonesia. In addition, bank’s marketing and advertisement also highly influences individuals to patronize Islamic banks.
External link
Libref/ Abduh M., Omar M. A. (2010) "Who Patronizes Islamic Banks in Indonesia?", Australian Journal of Islamic Law, Management and Finance, Vol. 1, No. 1, pp. 48-63, July 2010, pp. 1 - 15
© Программирование — Александр Красильников, 2008
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