Factors influencing withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues

Factors influencing withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues

As interest is prohibited, the reliance of Islamic banking towards deposits from depositors is higher than conventional banking. This study is aimed at investigating individual factors that may influence the withdrawal behavior of Malaysian Islamic banks customers. The withdrawal behavior studied he...

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Bibliographic Details
Main Author: Abduh, Muhamad
Format: Conference or Workshop Item
Language:English
Published: 2013
Subjects:
BP173.75 Islam and economics
HG1501 Banking
Online Access:http://irep.iium.edu.my/33405/
http://irep.iium.edu.my/33405/
http://irep.iium.edu.my/33405/1/PROCEEDINGS_2nd_AIBC2013_merged.pdf
id iium-33405
recordtype eprints
spelling iium-334052013-12-18T07:18:48Z http://irep.iium.edu.my/33405/ Factors influencing withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues Abduh, Muhamad BP173.75 Islam and economics HG1501 Banking As interest is prohibited, the reliance of Islamic banking towards deposits from depositors is higher than conventional banking. This study is aimed at investigating individual factors that may influence the withdrawal behavior of Malaysian Islamic banks customers. The withdrawal behavior studied here is in conjunction with three major issues which are (i) issues of non-shariah compliance, (ii) lower returns as compared to other banks, and (iii) rumors of a financial crisis that may affect the bank in the near future. The research employed a direct survey through a self-administered questionnaire handed out to Islamic banks customers in Malaysia using the multi-stage sampling technique. Afterwards, the logit-regression model is used to classify the depositors based on the probability of them withdrawing from Islamic banks due to those issues. The intention to avoid banking interest, type of account, working status, bank status, and bank ownership are the significant factors that could influence withdrawal behavior due to violation of shariah principles by the bank. Working status and bank ownership are the factors which influence withdrawal behavior due to lower return. Lastly, for the issue of banking crisis, factors emerged to be significant are type of account, total deposit in bank, awareness on deposit insurance, intention to avoid banking interest and perception that Islamic banks are less affected by the banking crisis. 2013-12 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/33405/1/PROCEEDINGS_2nd_AIBC2013_merged.pdf Abduh, Muhamad (2013) Factors influencing withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues. In: 2nd Applied International Business Conference 2013, 7th-8th Dec. 2013, Kota Kinabalu. http://submit.confbay.com/index.php?option=com_conf&acid=137&Itemid=1
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic BP173.75 Islam and economics
HG1501 Banking
spellingShingle BP173.75 Islam and economics
HG1501 Banking
Abduh, Muhamad
Factors influencing withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues
description As interest is prohibited, the reliance of Islamic banking towards deposits from depositors is higher than conventional banking. This study is aimed at investigating individual factors that may influence the withdrawal behavior of Malaysian Islamic banks customers. The withdrawal behavior studied here is in conjunction with three major issues which are (i) issues of non-shariah compliance, (ii) lower returns as compared to other banks, and (iii) rumors of a financial crisis that may affect the bank in the near future. The research employed a direct survey through a self-administered questionnaire handed out to Islamic banks customers in Malaysia using the multi-stage sampling technique. Afterwards, the logit-regression model is used to classify the depositors based on the probability of them withdrawing from Islamic banks due to those issues. The intention to avoid banking interest, type of account, working status, bank status, and bank ownership are the significant factors that could influence withdrawal behavior due to violation of shariah principles by the bank. Working status and bank ownership are the factors which influence withdrawal behavior due to lower return. Lastly, for the issue of banking crisis, factors emerged to be significant are type of account, total deposit in bank, awareness on deposit insurance, intention to avoid banking interest and perception that Islamic banks are less affected by the banking crisis.
format Conference or Workshop Item
author Abduh, Muhamad
author_facet Abduh, Muhamad
author_sort Abduh, Muhamad
title Factors influencing withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues
title_short Factors influencing withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues
title_full Factors influencing withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues
title_fullStr Factors influencing withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues
title_full_unstemmed Factors influencing withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues
title_sort factors influencing withdrawal behavior of malaysian islamic bank customers: empirical evidence from three major issues
publishDate 2013
url http://irep.iium.edu.my/33405/
http://irep.iium.edu.my/33405/
http://irep.iium.edu.my/33405/1/PROCEEDINGS_2nd_AIBC2013_merged.pdf
first_indexed 2023-09-18T20:48:16Z
last_indexed 2023-09-18T20:48:16Z
_version_ 1777409821684793344

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