AN ANALYSIS OF PUBLIC PERCEPTION OF ISLAMIC BANKING IN THE GAMBIA
DOI:
https://doi.org/10.53840/ijiefer51Keywords:
Islamic banking, public perception, the Gambia, AnalysisAbstract
Modern Islamic finance has grown from a mere complement to conventional finance into a more viable and competitive form of financial intermediation in the world. It has received remarkable patronage from many Muslim majority countries since the advent in 1963. The Gambia is a Muslim majority West African nation where Islamic banking began in the country since 1997. However, the patronage of Islamic banking in the Gambia is quite insignificant compared to many Muslim countries. Hence, this paper seeks to analyze the perception of the Gambian public towards Islamic banking. A sample size of 459 respondents collected through questionnaire survey was used to collect the research data and the methodology adopted was quantitative with descriptive-cum-exploratory research design. SPSS version 25 and Microsoft Excel 2010 were used to analyze the data. Findings indicated that the perception of the Gambian public towards Islamic banking is generally positive and awareness about the existence of Islamic banking was high. However, knowledge about Islamic banking principles and understanding of Islamic banking products and operations were quite poor. Results also suggest that the Gambian public is willing to patronize Islamic banking, however, religion although important, but it is not the main patronage factor for Islamic banking in the Gambia. Results of Multiple Regression indicated that two of the independent variables namely, awareness and understanding of Islamic banking principles and products were not statistically significant in influencing public perception of Islamic banking while independent variables such as bank selection criteria and willingness to patronize were statistically significant.
Downloads
References
Abduh, M, and D Omarov. 2013. Muslims’ awareness and willingness to patronize Islamic banking in Kazakhstan Journal of Islamic Banking and Finance 16-24.
Adekanye, F. 2010. The Elements of Banking in Nigeria 4th Edition. Lagos: Fazburn Publishers.
Adeyemi , Abideen Adewale, and Ibrahim Zare. 2015. "An empirical investigation of banking customers’ perception of the viability of Islamic banking in Côte d’Ivoire." Intellectual DIscourse, 23: Special Issue (2015) 425-451.
Ahmed , K F. 2014. "Banker's perceptions on Islamic banking in Oman." Asia Percific Journal of Reseach.
Ajagbe T. S. and Brimah A. N. . 2013. "Islamic Banking development and evolution: current issues and future prospects." Journal of Research in International Business and Management Vol. 3(2) 73-79.
Ali, N S, and R A Syed. 2010. "Post-9/11 perceptions of Islamic finance." International Research Journal of Finance and Economics, 39 27-39.
Awan , Hayat M., and Khuram Shahzad Bukhari . 2011. "Customer’s criteria for selecting an Islamic bank: evidence from Pakistan." Journal of Islamic Marketing Vol. 2 No. 1, 14-27.
Bukhari. M. S. Sillah. 2005. "Banking and Economic Growth: A case of the Gambia, Dissertation." University Kiel 1-249.
CBG. 2019. Banjul: FSD, insurance, HR & Microfinance Dept.
CBG. 2018. Annual Report. Banjul: Central Bank of The Gambia.
Chachi, Abdelkader. 2005. "Origin and Development of Commercial and Islamic Banking Operations." Journal of King Abdul Aziz University Islamic Economic Vol. 18, No. 2 3-25.
Chapra, U M, and T Khan. 2000. Regulation and Supervision of Islamic Banks Occasional Paper No.3.
Chhapra, U I, and S Bhutto. 2013. "An empirical investigation on perception of post- graduate students towards Islamic finance in Islamic republic of Pakistan." Asian Journal of Research in Banking and Finance,Vol.3No.12 68-80.
Denscombe, M. 2010. The good research guide: for small-scale social research projects. Bell and Bain Ltd: Glasgow.
Devlin, F J. 2002. "Customer knowledge and choice criteria of multiple banking." Journal of Strategic Marketing, Vol. 10 273-290.
Echchabi , A, D Azouzi , and A H Aziz . 2016. The future prospects of Islamic banking in Tunisia: An empirical survey Euro Med Journal of Business, 11 (1) 119-131.
Echchabi, A, and F Echchabi. 2013. Islamic insurance in the European countries: Insights from French Muslims’ perspective. WSEAS Transactions on Business and Economics 10 (3) 125-132.
Faye, Issa, Thouraya Triki, and Thierry Kangoye. 2013. "The Islamic finance promises: Evidence from Africa." Review of Development Finance 3 136-151.
GBOS. 2013. Population and Housing Census. Banjul: The Repulic of The Gambia.
Gerrard, P, and J Cunningham. 1997. Islamic banking: a study in Singapore International Journal of Bank Marketing, Vol.15 No.6 204-216.
Hegazy, I. 1995. "''An empirical comparative study between Islamic and commercial banks’selection criteria in Egypt”." International Journal of Commerce & Management, Vol. 5 No. 3 46-61.
Henry, M C, and R Wilson. 2004. The Politics of Islamic Finance. Edinburgh: Edinburgh University Press,.
Hidayat, E S, and K N Al-Bawardi. 2012. "Non-Muslims’ Perceptions toward Islamic Banking Services in Saudi Arabia." Journal of US-China Public Administration, Vol. 9, No. 6 654-670.
Hristov, H, and A Kuhar. 2015. "Subjective knowledge as a determinant of young adult consumers wine behavior." British Food Journal, 117(12).
IFSB. 2019. Islamic Financial Services Industry Stability Report. Kuala Lumpur: IFSB.
Islam, J, and Z Rahman. 2017. "Awareness and willingness towards Islamic banking among Muslims: An Indian perspective." International Journal of Islamic and Middle Eastern Finance and Management, 10 (1) 1-19.
Issawi, C. 1966. The Economic History of The Middle East 1800-1914. Chicago: University of Chicago Press.
Jabaly, R, A S Ameri, and A W Ghoul . 2013. "Islamic Banks Marketing and Communication Tactics: Towards a Better Reception and Perception." Journal of Islamic Economics, Banking and Finance 9(3) 150-176.
Karbhari, Y, K Naser, and Z Shahin. 2004. "Problems and challenges facing the Islamic banking system in the west." Thunderbird International Business Review, Vol.46 No.5, 521-543.
Karim, N, M Tarazi, and X Reille. 2008. "Islamic micronance: An emerging market niche." CGAP Focus Note, 49 1-15.
Khan, A, and T Khanna. 2010. "Is faith a luxury for the rich? Examining the influence of religious beliefs on individual financial choices. Retrieved January 12, 2012." http://people.hbs.edu/jsiegel/KhanKhanna201004.pdf.
Khan, N H, and N Asghar. 2012. "Customer Awareness and Adoption of Islamic Banking in Pakistan." Interdisciplinary Journal of Contemporary Research in Business 359-366.
Khattak, Naveed Azeem, and K Rehman. 2010. "Customer satisfaction and awareness of Islamic banking system in Pakistan." African journal of business management 4(5): 662-671.
Khokhar, Imran , and Bukhari M. S. Sillah. 2014. "Consumer Perceptions on Islamic Banks: The Case of Saudi Arabia." The International Association of Islamic Banks Karachi vol. no. 4. 70-81.
Lancaster, J K. 1966. "A new approach to consumer theory." Journal of Political Economy, Vol.74 No.2.
Lateh, N, S Ismail, and M N Ariffin. 2009. "Customers’ perceptions on the objectives, characteristics and selection criteria of Islamic bank in Thailand." Gadjah Mada International Journal of Business, 11(2) 167-189.
Lewis, B. 1970. Cambridge History of Islam. Cambridge: Cambridge University Press.
Loo, M. 2010. "Attitudes and perceptions towards Islamic banking among Muslims and non-Muslims in Malaysia: implications for marketing to baby boomers and x-generation." International Journal of Arts and Sciences, 3(13) 453-485.
Lujja, Sulaiman, Mustafa Omar Mohammed, and Rusni Hassan. 2018. "Islamic banking: an exploratory study of public perception in Uganda." Journal of Islamic Accounting and Business Research Vol.9 No.3 336-352.
Mahdzan, S N, R Zainudin, and F S Au. 2017. The adoption of Islamic banking services in Malaysia Journal of Islamic Marketing,Vol.8 No.3 496-512.
Mahdzan, S N, R Zainudin, and F S Au. 2015. "The adoption of Islamic banking services in Malaysia." Journal of Islamic Marketing,Vol.8 No.3 496-512.
Mahmoud, Limam Ould Mohamed , and Muhamad Abduh. 2014. "The Role of Awareness in Islamic Bank Patronizing Behavior of Mauritanian: An Application of TRA." Journal of Islamic Finance, Vol. 3 No. 2 1-10.
Mariadas, Paul Anthony , and Uma Murthy. 2017. "Factors Influencing the Adoption of Islamic Banking in Malaysia." International Journal of Business and Management; Vol. 12, No. 11 1-7.
Mehtab, Humna, Zafar Zaheer, and Shahid Ali. 2015. "Knowledge, Attitudes and Practices (KAP) Survey: A Case Study on Islamic Banking at Peshawar, Pakistan." FWU Journal of Social Sciences, Winter, Vol.9, No.2 1-13.
Moody. 2008. Global Banking Report: Islamic Finance Explores New Horizon in Africa. New York : Moody.
Muniurrun, P R, and Y.P L.B.S Naidoo. 2010. "Service quality in the public service." International Journal of Management and Marketing Research, Vol.3 No.1 37-50.
Novethic. 2009. "Islamic Finance and SRI: Any Crossover?" Working paper.
Obeid, Hassan, and Souheila Kaabachi. 2016. "Empirical Investigation Into Customer Adoption Of Islamic Banking Services In Tunisia." The Journal of Applied Business Research Volume 32, Number 4 1-14.
Perfect , David . 2008. "Politics and Society in The Gambia Since Independence." History Compass Vol 6 Issue 2 426-438.
Rammal, G H, and R Zurbruegg. 2007. "Awareness Of Islamic Banking Products Among Muslims: The Case Of Australia." Journal of Financial Services Marketing, 12(1) 65-74.
Rehman, A A, and O Masood. 2012. "Why do customers patronize Islamic banks? A case study of Pakistan." QualitativeResearchinFinancialMarkets,Vol.4Nos2/3 130-141.
Rehman, R R, and M H Shoaib. 2014. "Employee perception, knowledge and potential of Islamic banking in Pakistan." Journal of Islamic Economics Banking and Finance, Vol. 10 No. 4 89-101.
Riaz, A U, M B Burton, and E Monk. 2016. Perceptions on Islamic banking in the UK potentialities for empowerment, challenges and the role of scholars Critical Perspectives on Accounting, Vol.47 39-60.
Saini, Y, G Bick, and L Abdulla. 2011. "“Consumer awareness and usage of Islamic banking products In South Africa." South African Journal of Economic and Management Sciences Vol. 14 No. 3.
SESRIC. 2012. Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) Islamic Finance in OIC Member Countries. Ankara: OIC Outlook Series.
Sohail , Amer, M. Hamza , Fasih Ijaz , and M. Azeem . 2014. "Perception of Individual Consumers toward Islamic Banking Products and Services in Pakistan." Journal of Poverty, Investment and Development Vol.5 1-7.
Sohail, A, M Hamza, F Ijaz, and M Azeem. 2014. "Perception of Individual Consumers toward Islamic Banking Products and Services in Pakistan." Perception, 5.
Sonko, Muhammed. 2020. "Customers’ Perceptions on Islamic Banking: A Case Study in the Gambia." Journal of Islamic Finance, Vol. 9 No. 1 (2020) 013 – 023 013 – 023 .
Subhani, I M, A S Hasan, F M Rafiq, M Nayaz, and A Osman. 2012. "Consumer criteria for the selection of an Islamic bank: evidence from Pakistan." International Research Journal of Finance and Economics, No.94 114-122.
Syed,, Akbar S, A S Z, and K Shahin. 2012. "n investigation of user perceptions of Islamic banking practices in, the United Kingdom”, ." International Journal of Islamic and Middle Eastern Finance and Management, Vol. 5 No. 4, 353-370.
Tabachnick, G B, and S L Fidell. 2007. Using Multivariate Statistics. New York: Harper Collins.
Tara, N, M Irshad, R M Khan, M Yamin, and M Rizwan. 2014. "Factors influencing adoption of Islamic banking: a study from Pakistan." Journal of Public Administration and Governance, Vol.4 No.3 352-367.
Thambiah, S, Z U Eze, J A Santhapparaj, and K Arumugam. 2010. "Customers’ perception on Islamic retail banking: a comparative analysis between the urban and rural regions of Malaysia." International Journal of Business and Management, Vol.6 No.1 187-198.
Uddin , B M, M A Shammo, M Mahbub , and N Ahmed . 2016. "Non-Muslim customers’ attitude and perceptions toward the products and services of Islamic banks: An exhaustive study on Islamic Bank Bangladesh Limited." IOSR Journal of Business and Management, 18 (10) 72-79.
Venardos, M A. 2012. Islamic Banking and Finance in South-East Asia : Its DevelopmentandFuture. Singapore : World Scientific Publishing Co.
Wilson, R. 1997. Economics, Ethics and Religion: Jewish, Christian and Muslim Economic Though. New York: Macmillan, NewYork University Press.
Zikmund , G W. 2003. Business Research Methods 7th Edition. Ohio: Thomson/South-Western.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 International Journal of Islamic Economics and Finance Research
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
