Islamic Finance and Financial Inclusion : Measuring Use of and Demand for Formal Financial Services among Muslim Adults
In recent years, the Islamic finance industry has attracted the attention of policy makers and international donors as a possible channel through which to expand financial inclusion, particularly among Muslim adults. Yet cross-country, demand-side...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/10/18405190/islamic-finance-financial-inclusion-measuring-use-demand-formal-financial-services-among-muslim-adults http://hdl.handle.net/10986/16875 |
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okr-10986-16875 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCESS TO INFORMATION ACCOUNT OWNERSHIP ACCOUNTING ACCOUNTING PRINCIPLES ASSET FINANCING ASSET QUALITY BALANCE SHEET BANK ACCOUNT BANK ACCOUNTS BANK ASSETS BANK CUSTOMERS BANK LOAN BANK MARKETING BANKING ASSETS BANKING LAWS BANKING PRODUCTS BANKING SECTOR BANKING SECTOR ASSETS BANKING SERVICE BANKING SERVICES BANKING SYSTEMS BANKS BARRIER BIASES BUSINESS CREDIT MARKET BUSINESS CYCLE BUSINESS TRANSACTIONS CAPITALIZATION CENTRAL BANK SUPERVISION COLLEGE DEGREE COMMERCIAL BANKING COMMERCIAL BANKS CONSUMER LENDING CONVENTIONAL BANK CONVENTIONAL BANK LOAN CONVENTIONAL BANKING CONVENTIONAL BANKS CONVENTIONAL FINANCE CONVENTIONAL FINANCING CORRUPTION COUNTRY FIXED EFFECT COUNTRY FIXED EFFECTS CREDIT MARKET CREDIT MARKETS CREDIT PRODUCT CREDIT PRODUCTS CREDIT UNION CREDITWORTHINESS CUSTOMER SATISFACTION DEBIT CARD DEMOGRAPHIC DEPOSIT DEPOSITS DISCRIMINATION DISCRIMINATION IN CREDIT DUMMY VARIABLES ECONOMIC ATTITUDES EMPLOYER EMPLOYMENT EMPLOYMENT STATUS ENTREPRENEUR EQUALITY EQUITY INVESTMENT EUROPEAN CENTRAL BANK FEDERAL RESERVE FIFTH FINANCE CORPORATION FINANCE PRODUCTS FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DIFFICULTIES FINANCIAL ILLITERACY FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SECTOR FINANCIAL SERVICE FINANCIAL STABILITY FINANCIAL SUPPORT FINANCIAL SYSTEMS FINANCING ARRANGEMENTS FORMAL CREDIT FORMAL FINANCIAL INSTITUTION FORMAL FINANCIAL INSTITUTIONS FORMAL FINANCIAL SERVICES FORMAL LOAN FORMAL SAVING FORMAL SAVINGS GENDER GENDER GAP HARDSHIP HOUSEHOLD FINANCE HOUSEHOLDS INCOME INCOME DISTRIBUTION INCOME LEVELS INCOMES INFORMAL BORROWING INHERITANCE INSTALLMENT INSTALLMENTS INTEREST PAYMENT INTEREST RATE INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL FINANCE INVESTMENT ACCOUNT ISLAM ISLAMIC BANK ISLAMIC BANK CUSTOMERS ISLAMIC BANKING ISLAMIC BANKING PRODUCTS ISLAMIC BANKS ISLAMIC ECONOMICS ISLAMIC FINANCE ISLAMIC FINANCE INDUSTRIES ISLAMIC FINANCE INDUSTRY ISLAMIC FINANCIAL INDUSTRIES ISLAMIC FINANCIAL INSTITUTIONS ISLAMIC FINANCIAL PRODUCTS ISLAMIC FINANCIAL SERVICES ISLAMIC FINANCING ISLAMIC JURISPRUDENCE ISLAMIC LAW ISLAMIC LOAN ISLAMIC LOANS ISLAMIC MICROFINANCE ISLAMIC PRODUCTS LACK OF ACCESS LAWS LIFE EXPECTANCY LIMITED LIABILITY LIQUIDITY LOAN LOSS SHARING MARKET STRUCTURE MFIS MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MINORITY POPULATION MOBILE PHONE MORTGAGE MORTGAGE LENDING MUDARABA MUDARABA CONTRACT MURABAHA MUSHARAKA MUSLIM MUSLIM BANK MUSLIMS OUTREACH PATRONAGE PAYMENT OF INTEREST POST OFFICE PRICE SENSITIVITY PRINCIPAL-AGENT PROBLEMS PRIVATE LENDER PRIVATE SECTOR DEVELOPMENT PROFIT SHARING PUBLIC INSTITUTIONS QURAN RECEIPT REGULATORS REGULATORY REGIME REGULATORY REGIMES RELIGIOUS BELIEFS RELIGIOUS CONSTRAINT RELIGIOUS FACTORS REMITTANCES REPAYMENT REPAYMENT RATES REPUTATION RESERVE BANK RESERVE BANK OF INDIA RESERVES RETAIL BANKING RIBA SAVINGS SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS PRODUCT SAVINGS PRODUCTS SHARIA SHARIA-COMPLIANT FINANCE SHARIA-COMPLIANT SAVINGS SMALL BUSINESS SMALL BUSINESS CREDIT SMALL BUSINESSES TRANSITION ECONOMIES URBAN AREA URBAN AREAS VILLAGES WAGES WAQF |
| spellingShingle |
ACCESS TO INFORMATION ACCOUNT OWNERSHIP ACCOUNTING ACCOUNTING PRINCIPLES ASSET FINANCING ASSET QUALITY BALANCE SHEET BANK ACCOUNT BANK ACCOUNTS BANK ASSETS BANK CUSTOMERS BANK LOAN BANK MARKETING BANKING ASSETS BANKING LAWS BANKING PRODUCTS BANKING SECTOR BANKING SECTOR ASSETS BANKING SERVICE BANKING SERVICES BANKING SYSTEMS BANKS BARRIER BIASES BUSINESS CREDIT MARKET BUSINESS CYCLE BUSINESS TRANSACTIONS CAPITALIZATION CENTRAL BANK SUPERVISION COLLEGE DEGREE COMMERCIAL BANKING COMMERCIAL BANKS CONSUMER LENDING CONVENTIONAL BANK CONVENTIONAL BANK LOAN CONVENTIONAL BANKING CONVENTIONAL BANKS CONVENTIONAL FINANCE CONVENTIONAL FINANCING CORRUPTION COUNTRY FIXED EFFECT COUNTRY FIXED EFFECTS CREDIT MARKET CREDIT MARKETS CREDIT PRODUCT CREDIT PRODUCTS CREDIT UNION CREDITWORTHINESS CUSTOMER SATISFACTION DEBIT CARD DEMOGRAPHIC DEPOSIT DEPOSITS DISCRIMINATION DISCRIMINATION IN CREDIT DUMMY VARIABLES ECONOMIC ATTITUDES EMPLOYER EMPLOYMENT EMPLOYMENT STATUS ENTREPRENEUR EQUALITY EQUITY INVESTMENT EUROPEAN CENTRAL BANK FEDERAL RESERVE FIFTH FINANCE CORPORATION FINANCE PRODUCTS FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DIFFICULTIES FINANCIAL ILLITERACY FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SECTOR FINANCIAL SERVICE FINANCIAL STABILITY FINANCIAL SUPPORT FINANCIAL SYSTEMS FINANCING ARRANGEMENTS FORMAL CREDIT FORMAL FINANCIAL INSTITUTION FORMAL FINANCIAL INSTITUTIONS FORMAL FINANCIAL SERVICES FORMAL LOAN FORMAL SAVING FORMAL SAVINGS GENDER GENDER GAP HARDSHIP HOUSEHOLD FINANCE HOUSEHOLDS INCOME INCOME DISTRIBUTION INCOME LEVELS INCOMES INFORMAL BORROWING INHERITANCE INSTALLMENT INSTALLMENTS INTEREST PAYMENT INTEREST RATE INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL FINANCE INVESTMENT ACCOUNT ISLAM ISLAMIC BANK ISLAMIC BANK CUSTOMERS ISLAMIC BANKING ISLAMIC BANKING PRODUCTS ISLAMIC BANKS ISLAMIC ECONOMICS ISLAMIC FINANCE ISLAMIC FINANCE INDUSTRIES ISLAMIC FINANCE INDUSTRY ISLAMIC FINANCIAL INDUSTRIES ISLAMIC FINANCIAL INSTITUTIONS ISLAMIC FINANCIAL PRODUCTS ISLAMIC FINANCIAL SERVICES ISLAMIC FINANCING ISLAMIC JURISPRUDENCE ISLAMIC LAW ISLAMIC LOAN ISLAMIC LOANS ISLAMIC MICROFINANCE ISLAMIC PRODUCTS LACK OF ACCESS LAWS LIFE EXPECTANCY LIMITED LIABILITY LIQUIDITY LOAN LOSS SHARING MARKET STRUCTURE MFIS MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MINORITY POPULATION MOBILE PHONE MORTGAGE MORTGAGE LENDING MUDARABA MUDARABA CONTRACT MURABAHA MUSHARAKA MUSLIM MUSLIM BANK MUSLIMS OUTREACH PATRONAGE PAYMENT OF INTEREST POST OFFICE PRICE SENSITIVITY PRINCIPAL-AGENT PROBLEMS PRIVATE LENDER PRIVATE SECTOR DEVELOPMENT PROFIT SHARING PUBLIC INSTITUTIONS QURAN RECEIPT REGULATORS REGULATORY REGIME REGULATORY REGIMES RELIGIOUS BELIEFS RELIGIOUS CONSTRAINT RELIGIOUS FACTORS REMITTANCES REPAYMENT REPAYMENT RATES REPUTATION RESERVE BANK RESERVE BANK OF INDIA RESERVES RETAIL BANKING RIBA SAVINGS SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS PRODUCT SAVINGS PRODUCTS SHARIA SHARIA-COMPLIANT FINANCE SHARIA-COMPLIANT SAVINGS SMALL BUSINESS SMALL BUSINESS CREDIT SMALL BUSINESSES TRANSITION ECONOMIES URBAN AREA URBAN AREAS VILLAGES WAGES WAQF Demirguc-Kunt, Asli Klapper, Leora Randall, Douglas Islamic Finance and Financial Inclusion : Measuring Use of and Demand for Formal Financial Services among Muslim Adults |
| geographic_facet |
Middle East and North Africa North Africa Middle East |
| relation |
Policy Research Working Paper;No. 6642 |
| description |
In recent years, the Islamic finance
industry has attracted the attention of policy makers and
international donors as a possible channel through which to
expand financial inclusion, particularly among Muslim
adults. Yet cross-country, demand-side data on actual usage
and preference gaps in financial services between Muslims
and non-Muslims have been scarce. This paper uses novel data
to explore the use of and demand for formal financial
services among self-identified Muslim adults. In a sample of
more than 65,000 adults from 64 economies (excluding
countries where less than 1 percent or more than 99 percent
of the sample self-identified as Muslim), the analysis finds
that Muslims are significantly less likely than non-Muslims
to own a formal account or save at a formal financial
institution after controlling for other individual- and
country-level characteristics. But the analysis finds no
evidence that Muslims are less likely than non-Muslims to
report formal or informal borrowing. Finally, in an extended
survey of adults in five North African and Middle Eastern
countries with relatively nascent Islamic finance
industries, the study finds little use of Sharia-compliant
banking products, although it does find evidence of a
hypothetical preference for Sharia-compliant products among
a plurality of respondents despite higher costs. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Demirguc-Kunt, Asli Klapper, Leora Randall, Douglas |
| author_facet |
Demirguc-Kunt, Asli Klapper, Leora Randall, Douglas |
| author_sort |
Demirguc-Kunt, Asli |
| title |
Islamic Finance and Financial Inclusion : Measuring Use of and Demand for Formal Financial Services among Muslim Adults |
| title_short |
Islamic Finance and Financial Inclusion : Measuring Use of and Demand for Formal Financial Services among Muslim Adults |
| title_full |
Islamic Finance and Financial Inclusion : Measuring Use of and Demand for Formal Financial Services among Muslim Adults |
| title_fullStr |
Islamic Finance and Financial Inclusion : Measuring Use of and Demand for Formal Financial Services among Muslim Adults |
| title_full_unstemmed |
Islamic Finance and Financial Inclusion : Measuring Use of and Demand for Formal Financial Services among Muslim Adults |
| title_sort |
islamic finance and financial inclusion : measuring use of and demand for formal financial services among muslim adults |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/10/18405190/islamic-finance-financial-inclusion-measuring-use-demand-formal-financial-services-among-muslim-adults http://hdl.handle.net/10986/16875 |
| _version_ |
1764434776238850048 |
| spelling |
okr-10986-168752021-04-23T14:03:32Z Islamic Finance and Financial Inclusion : Measuring Use of and Demand for Formal Financial Services among Muslim Adults Demirguc-Kunt, Asli Klapper, Leora Randall, Douglas ACCESS TO INFORMATION ACCOUNT OWNERSHIP ACCOUNTING ACCOUNTING PRINCIPLES ASSET FINANCING ASSET QUALITY BALANCE SHEET BANK ACCOUNT BANK ACCOUNTS BANK ASSETS BANK CUSTOMERS BANK LOAN BANK MARKETING BANKING ASSETS BANKING LAWS BANKING PRODUCTS BANKING SECTOR BANKING SECTOR ASSETS BANKING SERVICE BANKING SERVICES BANKING SYSTEMS BANKS BARRIER BIASES BUSINESS CREDIT MARKET BUSINESS CYCLE BUSINESS TRANSACTIONS CAPITALIZATION CENTRAL BANK SUPERVISION COLLEGE DEGREE COMMERCIAL BANKING COMMERCIAL BANKS CONSUMER LENDING CONVENTIONAL BANK CONVENTIONAL BANK LOAN CONVENTIONAL BANKING CONVENTIONAL BANKS CONVENTIONAL FINANCE CONVENTIONAL FINANCING CORRUPTION COUNTRY FIXED EFFECT COUNTRY FIXED EFFECTS CREDIT MARKET CREDIT MARKETS CREDIT PRODUCT CREDIT PRODUCTS CREDIT UNION CREDITWORTHINESS CUSTOMER SATISFACTION DEBIT CARD DEMOGRAPHIC DEPOSIT DEPOSITS DISCRIMINATION DISCRIMINATION IN CREDIT DUMMY VARIABLES ECONOMIC ATTITUDES EMPLOYER EMPLOYMENT EMPLOYMENT STATUS ENTREPRENEUR EQUALITY EQUITY INVESTMENT EUROPEAN CENTRAL BANK FEDERAL RESERVE FIFTH FINANCE CORPORATION FINANCE PRODUCTS FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DIFFICULTIES FINANCIAL ILLITERACY FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SECTOR FINANCIAL SERVICE FINANCIAL STABILITY FINANCIAL SUPPORT FINANCIAL SYSTEMS FINANCING ARRANGEMENTS FORMAL CREDIT FORMAL FINANCIAL INSTITUTION FORMAL FINANCIAL INSTITUTIONS FORMAL FINANCIAL SERVICES FORMAL LOAN FORMAL SAVING FORMAL SAVINGS GENDER GENDER GAP HARDSHIP HOUSEHOLD FINANCE HOUSEHOLDS INCOME INCOME DISTRIBUTION INCOME LEVELS INCOMES INFORMAL BORROWING INHERITANCE INSTALLMENT INSTALLMENTS INTEREST PAYMENT INTEREST RATE INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL FINANCE INVESTMENT ACCOUNT ISLAM ISLAMIC BANK ISLAMIC BANK CUSTOMERS ISLAMIC BANKING ISLAMIC BANKING PRODUCTS ISLAMIC BANKS ISLAMIC ECONOMICS ISLAMIC FINANCE ISLAMIC FINANCE INDUSTRIES ISLAMIC FINANCE INDUSTRY ISLAMIC FINANCIAL INDUSTRIES ISLAMIC FINANCIAL INSTITUTIONS ISLAMIC FINANCIAL PRODUCTS ISLAMIC FINANCIAL SERVICES ISLAMIC FINANCING ISLAMIC JURISPRUDENCE ISLAMIC LAW ISLAMIC LOAN ISLAMIC LOANS ISLAMIC MICROFINANCE ISLAMIC PRODUCTS LACK OF ACCESS LAWS LIFE EXPECTANCY LIMITED LIABILITY LIQUIDITY LOAN LOSS SHARING MARKET STRUCTURE MFIS MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MINORITY POPULATION MOBILE PHONE MORTGAGE MORTGAGE LENDING MUDARABA MUDARABA CONTRACT MURABAHA MUSHARAKA MUSLIM MUSLIM BANK MUSLIMS OUTREACH PATRONAGE PAYMENT OF INTEREST POST OFFICE PRICE SENSITIVITY PRINCIPAL-AGENT PROBLEMS PRIVATE LENDER PRIVATE SECTOR DEVELOPMENT PROFIT SHARING PUBLIC INSTITUTIONS QURAN RECEIPT REGULATORS REGULATORY REGIME REGULATORY REGIMES RELIGIOUS BELIEFS RELIGIOUS CONSTRAINT RELIGIOUS FACTORS REMITTANCES REPAYMENT REPAYMENT RATES REPUTATION RESERVE BANK RESERVE BANK OF INDIA RESERVES RETAIL BANKING RIBA SAVINGS SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS PRODUCT SAVINGS PRODUCTS SHARIA SHARIA-COMPLIANT FINANCE SHARIA-COMPLIANT SAVINGS SMALL BUSINESS SMALL BUSINESS CREDIT SMALL BUSINESSES TRANSITION ECONOMIES URBAN AREA URBAN AREAS VILLAGES WAGES WAQF In recent years, the Islamic finance industry has attracted the attention of policy makers and international donors as a possible channel through which to expand financial inclusion, particularly among Muslim adults. Yet cross-country, demand-side data on actual usage and preference gaps in financial services between Muslims and non-Muslims have been scarce. This paper uses novel data to explore the use of and demand for formal financial services among self-identified Muslim adults. In a sample of more than 65,000 adults from 64 economies (excluding countries where less than 1 percent or more than 99 percent of the sample self-identified as Muslim), the analysis finds that Muslims are significantly less likely than non-Muslims to own a formal account or save at a formal financial institution after controlling for other individual- and country-level characteristics. But the analysis finds no evidence that Muslims are less likely than non-Muslims to report formal or informal borrowing. Finally, in an extended survey of adults in five North African and Middle Eastern countries with relatively nascent Islamic finance industries, the study finds little use of Sharia-compliant banking products, although it does find evidence of a hypothetical preference for Sharia-compliant products among a plurality of respondents despite higher costs. 2014-02-04T19:16:01Z 2014-02-04T19:16:01Z 2013-10 http://documents.worldbank.org/curated/en/2013/10/18405190/islamic-finance-financial-inclusion-measuring-use-demand-formal-financial-services-among-muslim-adults http://hdl.handle.net/10986/16875 English en_US Policy Research Working Paper;No. 6642 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Middle East and North Africa North Africa Middle East |