Abstract: Promotion of socioeconomic justice through redistribution of wealth is one of the most salient features of Islamic economic system. Islamic financial institutions known as Islamic banks are used to implement this in practice under the guidelines of Islamic Shariah law. Islamic banking systems strive to promote and achieve financial inclusion among the society by offering interest-free banking and risk-sharing financing solutions. Shariah-compliant micro finance is one of the most popular financial instruments used by Islamic banks to enhance access to finance. Benevolent loan (or Qard-al-Hassanah) is one of the popular financial tools used by the Islamic banks to promote financial inclusion. This aspect of Islamic banking is empirically examined in this paper with specific reference to firm’s resources, largely defined here as intellectual capital. The paper finds that Islamic banks promote financial inclusion by exploiting available resources especially, the human intellectual capital.
Abstract: Economic development and growth are significantly
linked to the consistent and sustainable sector of small and medium
enterprises (SMEs). Banks are the frontrunners in financing and
advising SMEs. The main objective of the study is to assess the
tendency of SMEs to use the Islamic bank. Model was developed
using quantitative method with a hypothetical-deductive testing
approach. Model (N = 364) used primary data on the tendency of
SMEs to use Islamic banks gathered from questionnaire. It is found
by Mann-Whitney test that the tendency to use Islamic bank varies
between those firms which consider formal financing with the ones
relying on informal financing with the latter tends more to use
Islamic bank. This study can serve academic researchers, policy
makers, and developing countries as a model of SMEs’ desirability to
Islamic banking.
Abstract: Unlike its conventional counterpart, Islamic principles
forbid Islamic banks to take any interest-related income and thus
makes deposits from depositors as an important source of fund for its
operational and financing. Consequently, the risk of deposit
withdrawal by depositors is an important aspect that should be wellmanaged
in Islamic banking. This paper aims to investigate factors
that influence depositors- withdrawal behavior in Islamic banks,
particularly in Malaysia, using the framework of theory of reasoned
action. A total of 368 respondents from Klang valley are involved in
the analysis. The paper finds that all the constructs variable i.e.
normative beliefs, subjective norms, behavioral beliefs, and attitude
towards behavior are perceived to be distinct by the respondents. In
addition, the structural equation model is able to verify the structural
relationships between subjective norms, attitude towards behavior
and behavioral intention. Subjective norms gives more influence to
depositors- decision on deposit withdrawal compared to attitude
towards behavior.