Withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues

As interest is prohibited, the reliance of Islamic banking towards bank deposits from depositors is higher than conventional banking. Efforts that could help in preventing funds withdrawal by the depositors thus become necessary in order to avoid bank instability. This study is aimed at investigatin...

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Main Author:	Abduh, Muhamad
Format:	Article
Language:	English
Published:	International Association of Islamic Banks 2014
Subjects:	BP173.75 Islam and economics HG1501 Banking
Online Access:	http://irep.iium.edu.my/40575/ http://irep.iium.edu.my/40575/1/Withdrawal_Behavior_of_Malaysian_Islamic_Bank_Customers%2C_3_Major_Issues.pdf

id	iium-40575
recordtype	eprints
spelling	iium-405752018-05-23T07:22:55Z http://irep.iium.edu.my/40575/ 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 bank deposits from depositors is higher than conventional banking. Efforts that could help in preventing funds withdrawal by the depositors thus become necessary in order to avoid bank instability. This study is aimed at investigating 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 about forthcoming financial crisis that may affect the performance of the bank. 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. The intention to avoid interest, type of account, working status, bank status, and bank ownership are the significant factors that could influence withdrawal behavior in model 1. Working status and bank ownership are the factors which influence withdrawal behavior in model 2. Lastly, for model 3, factors that emerged to be significant are type of account, total deposit in bank, awareness on deposit insurance, intention to avoid interest and perception that Islamic banks are less affected by the crisis. International Association of Islamic Banks 2014-12-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/40575/1/Withdrawal_Behavior_of_Malaysian_Islamic_Bank_Customers%2C_3_Major_Issues.pdf Abduh, Muhamad (2014) Withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues. Journal of Islamic Banking and Finance, OctDec. pp. 43-54. ISSN 1814-8042
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 Withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues
description	As interest is prohibited, the reliance of Islamic banking towards bank deposits from depositors is higher than conventional banking. Efforts that could help in preventing funds withdrawal by the depositors thus become necessary in order to avoid bank instability. This study is aimed at investigating 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 about forthcoming financial crisis that may affect the performance of the bank. 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. The intention to avoid interest, type of account, working status, bank status, and bank ownership are the significant factors that could influence withdrawal behavior in model 1. Working status and bank ownership are the factors which influence withdrawal behavior in model 2. Lastly, for model 3, factors that emerged to be significant are type of account, total deposit in bank, awareness on deposit insurance, intention to avoid interest and perception that Islamic banks are less affected by the crisis.
format	Article
author	Abduh, Muhamad
author_facet	Abduh, Muhamad
author_sort	Abduh, Muhamad
title	Withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues
title_short	Withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues
title_full	Withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues
title_fullStr	Withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues
title_full_unstemmed	Withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues
title_sort	withdrawal behavior of malaysian islamic bank customers: empirical evidence from three major issues
publisher	International Association of Islamic Banks
publishDate	2014
url	http://irep.iium.edu.my/40575/ http://irep.iium.edu.my/40575/1/Withdrawal_Behavior_of_Malaysian_Islamic_Bank_Customers%2C_3_Major_Issues.pdf
first_indexed	2023-09-18T20:58:15Z
last_indexed	2023-09-18T20:58:15Z
_version_	1777410449119117312

Withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues

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