Understanding Demand for Sharia-Compliant Loans : Results of a Randomized Experiment in Jordan
The evidence on demand for sharia-compliant financial services is mixed. On the one hand, IFC-funded studies showed relatively high demand, while results from Findex showed that financial exclusion due to religious reasons was minimal (Demirguc-Kun...
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| Format: | Brief |
| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/06/26430468/understanding-demand-sharia-compliant-loans-results-randomized-experiment-jordan http://hdl.handle.net/10986/24569 |
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okr-10986-245692021-05-25T10:54:39Z Understanding Demand for Sharia-Compliant Loans : Results of a Randomized Experiment in Jordan El-Zoghbi, Mayada Karlan, Dean Osman, Adam Shammout, Nour MUSLIMS CLIENT TRANSACTION FINANCIAL SERVICES PDF BORROWER GOOD PRICE INCREASES SHARIA SOFTWARE RESULTS INTEREST VALUE PRICE ELASTICITY OF DEMAND INTEREST RATE OPTION DEMAND INFORMATION BANK ACCOUNT MICROFINANCE LOANS FAX HOUSEHOLD BARGAINING CONSUMER DURABLE LOAN PRODUCT REPAYMENT MURABAHA LOAN BORROWERS PRICE MARKET VERIFICATION FINANCIAL SERVICE ISLAMIC FINANCE INSTRUMENTS CREDIBILITY COMPUTER MICROFINANCE INSTITUTIONS RESULT MICROFINANCE INSTITUTIONS ADVERTISING GOODS SAVINGS DURABLE BLOG BUSINESS FINANCIAL INSTITUTION CONSUMER CREDIT RELIGIOUS LEADER PRODUCTS INNOVATION INSTITUTION OPTIONS ISLAMIC MICROFINANCE MARKETING LOAN APPLICATION SERVICE PROVIDER CUSTOMERS DATABASE LOANS PRICE SENSITIVITY SEE DURABLES AUTHENTICATION TARGET FINANCE CLIENTS The evidence on demand for sharia-compliant financial services is mixed. On the one hand, IFC-funded studies showed relatively high demand, while results from Findex showed that financial exclusion due to religious reasons was minimal (Demirguc-Kunt, Klapper, and Randall 2013). One of the reasons behind these contradictory messages could be the survey instruments themselves: perhaps the issue is not so much what people want but how they were asked. For example, if you ask participants why they do not use borrowing or savings products, their responses may include ‘they are too expensive’ or ‘they are too far away’ even if the real reason is something more nuanced, such as intra-household bargaining issues. Similarly, if you ask Muslims if they prefer an interest-bearing loan or a noninterest-bearing loan, it might not be surprising that they would choose the noninterest-bearing loan, perhaps because they want to demonstrate piety, or maybe because they assume it means a no-cost loan. 2016-06-17T18:50:44Z 2016-06-17T18:50:44Z 2016-03 Brief http://documents.worldbank.org/curated/en/2016/06/26430468/understanding-demand-sharia-compliant-loans-results-randomized-experiment-jordan http://hdl.handle.net/10986/24569 English en_US CGAP Brief; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief Middle East and North Africa Jordan |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
MUSLIMS CLIENT TRANSACTION FINANCIAL SERVICES BORROWER GOOD PRICE INCREASES SHARIA SOFTWARE RESULTS INTEREST VALUE PRICE ELASTICITY OF DEMAND INTEREST RATE OPTION DEMAND INFORMATION BANK ACCOUNT MICROFINANCE LOANS FAX HOUSEHOLD BARGAINING CONSUMER DURABLE LOAN PRODUCT REPAYMENT MURABAHA LOAN BORROWERS PRICE MARKET VERIFICATION FINANCIAL SERVICE ISLAMIC FINANCE INSTRUMENTS CREDIBILITY COMPUTER MICROFINANCE INSTITUTIONS RESULT MICROFINANCE INSTITUTIONS ADVERTISING GOODS SAVINGS DURABLE BLOG BUSINESS FINANCIAL INSTITUTION CONSUMER CREDIT RELIGIOUS LEADER PRODUCTS INNOVATION INSTITUTION OPTIONS ISLAMIC MICROFINANCE MARKETING LOAN APPLICATION SERVICE PROVIDER CUSTOMERS DATABASE LOANS PRICE SENSITIVITY SEE DURABLES AUTHENTICATION TARGET FINANCE CLIENTS |
| spellingShingle |
MUSLIMS CLIENT TRANSACTION FINANCIAL SERVICES BORROWER GOOD PRICE INCREASES SHARIA SOFTWARE RESULTS INTEREST VALUE PRICE ELASTICITY OF DEMAND INTEREST RATE OPTION DEMAND INFORMATION BANK ACCOUNT MICROFINANCE LOANS FAX HOUSEHOLD BARGAINING CONSUMER DURABLE LOAN PRODUCT REPAYMENT MURABAHA LOAN BORROWERS PRICE MARKET VERIFICATION FINANCIAL SERVICE ISLAMIC FINANCE INSTRUMENTS CREDIBILITY COMPUTER MICROFINANCE INSTITUTIONS RESULT MICROFINANCE INSTITUTIONS ADVERTISING GOODS SAVINGS DURABLE BLOG BUSINESS FINANCIAL INSTITUTION CONSUMER CREDIT RELIGIOUS LEADER PRODUCTS INNOVATION INSTITUTION OPTIONS ISLAMIC MICROFINANCE MARKETING LOAN APPLICATION SERVICE PROVIDER CUSTOMERS DATABASE LOANS PRICE SENSITIVITY SEE DURABLES AUTHENTICATION TARGET FINANCE CLIENTS El-Zoghbi, Mayada Karlan, Dean Osman, Adam Shammout, Nour Understanding Demand for Sharia-Compliant Loans : Results of a Randomized Experiment in Jordan |
| geographic_facet |
Middle East and North Africa Jordan |
| relation |
CGAP Brief; |
| description |
The evidence on demand for
sharia-compliant financial services is mixed. On the one
hand, IFC-funded studies showed relatively high demand,
while results from Findex showed that financial exclusion
due to religious reasons was minimal (Demirguc-Kunt,
Klapper, and Randall 2013). One of the reasons behind these
contradictory messages could be the survey instruments
themselves: perhaps the issue is not so much what people
want but how they were asked. For example, if you ask
participants why they do not use borrowing or savings
products, their responses may include ‘they are too
expensive’ or ‘they are too far away’ even if the real
reason is something more nuanced, such as intra-household
bargaining issues. Similarly, if you ask Muslims if they
prefer an interest-bearing loan or a noninterest-bearing
loan, it might not be surprising that they would choose the
noninterest-bearing loan, perhaps because they want to
demonstrate piety, or maybe because they assume it means a
no-cost loan. |
| format |
Brief |
| author |
El-Zoghbi, Mayada Karlan, Dean Osman, Adam Shammout, Nour |
| author_facet |
El-Zoghbi, Mayada Karlan, Dean Osman, Adam Shammout, Nour |
| author_sort |
El-Zoghbi, Mayada |
| title |
Understanding Demand for Sharia-Compliant Loans : Results of a Randomized Experiment in Jordan |
| title_short |
Understanding Demand for Sharia-Compliant Loans : Results of a Randomized Experiment in Jordan |
| title_full |
Understanding Demand for Sharia-Compliant Loans : Results of a Randomized Experiment in Jordan |
| title_fullStr |
Understanding Demand for Sharia-Compliant Loans : Results of a Randomized Experiment in Jordan |
| title_full_unstemmed |
Understanding Demand for Sharia-Compliant Loans : Results of a Randomized Experiment in Jordan |
| title_sort |
understanding demand for sharia-compliant loans : results of a randomized experiment in jordan |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/06/26430468/understanding-demand-sharia-compliant-loans-results-randomized-experiment-jordan http://hdl.handle.net/10986/24569 |
| _version_ |
1764457071579758592 |