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

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.

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Abstract

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.

Item Type:	Conference or Workshop Item (Full Paper)
Additional Information:	6777/33405
Uncontrolled Keywords:	Islamic bank, withdrawal behavior, consumer behaviour, Malaysia
Subjects:	B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP1 Islam > BP173.75 Islam and economics H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Muhamad Abduh
Date Deposited:	18 Dec 2013 15:18
Last Modified:	18 Dec 2013 15:18
URI:	http://irep.iium.edu.my/id/eprint/33405

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