Maqasid-based consumer preference index for tawarruq personal financing

Amin, Hanudin and Suhartanto, Dwi and Ali, Muhammad and Ghazali, Mohd Fahmi and Rizal, Hamid and Abdul Razak, Dzuljastri (2021) Maqasid-based consumer preference index for tawarruq personal financing. International Journal of Islamic Economics and Finance. pp. 1-30. ISSN 2622-3562 E-ISSN 2622- 4372 (In Press)

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Abstract

Relatively, maqasid al-Shariah is a missing dimension element in the available tawarruq personal financing, resulting in a convergence of this facility and its traditional counterpart. This work examines the consumer preference of tawarruq personal financing using the maqasid-based consumer preference index (MCPi). Drawing upon the MCPi, the present study examines consumer preference on the offered Tawarruq personal financing by 7 Islamic banks in Malaysia based on valid 456 usable questionnaires. The primary findings obtained indicate that all banks somewhat have a moderate MCPi. These include Bank Islam Malaysia Berhad (BIMB), Bank Muamalat Malaysia Berhad (BMMB), Maybank Islamic, CIMB Islamic, RHB Islamic, Kuwait Finance House and Al-Rajhi Bank. This study examines a new approach to measure consumer preference using the MCPi. Our contributions are confined to these particular variables – Educating Customer, Establishing Justice and Promoting Welfare. Our study also limits its perspective on the general context of tawarruq personal financing. Future works may provide different perspectives on these interrogations. This study provides a new index for Islamic banks to manage tawarruq personal financing products according to maqasid al-Shariah effectively. This study introduces a new measure of consumer preference of tawarruq personal financing namely the MCPi in the context of Malaysia.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Consumer, Maqasid al-Shariah, Islamic financing, Malaysia
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User:	Dr Dzuljastri Abdul Razak
Date Deposited:	08 Nov 2021 09:03
Last Modified:	08 Nov 2021 09:03
URI:	http://irep.iium.edu.my/id/eprint/93519

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