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Jordanian Criteria for Islamic Banks Selection. Evidence from the Jordanian Banking Sector

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  • Zeyad Saleem Ramadan

    (Applied Science University)

Abstract

This study aims to investigate the criteria of Islamic bank selection for Jordanian customers. In order to achieve this goal, the study tested the hypothesis that there is no significant difference in the ranking of banking selection factors as perceived by customers of Islamic banks in Jordan, in order to answer the following questions: what are the criteria that Jordanian customers highly regard when choosing an Islamic bank?, and what is the ranking of importance of the criteria that affect the decision of choosing the Islamic bank in a dual-banking systems as in Jordan?. Using Friedman Test the preliminary data, which were collected using a questionnaire were analyzed. The finding of this study has shown that the selection of Islamic banks seems to be primarily a mixture of all the 12 criteria that have been tested. In terms of importance, the study showed that friendly personnel, Islamic reputation and image, and product price are in the top three, in order, as expressed by the study sample, while factors like location being near home or work, convenience and environmental practice and impact seem to be the least significant factors by participants when choosing an Islamic bank. One of the most important finding of this study is that Islamic banks in Jordan cannot attract their customers by the religion aspect only; it would require Islamic banks to properly understand the needs and expectations of existing and prospective customers.

Suggested Citation

  • Zeyad Saleem Ramadan, 2013. "Jordanian Criteria for Islamic Banks Selection. Evidence from the Jordanian Banking Sector," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(3), pages 139-145, July.
    • Handle: RePEc:hur:ijaraf:v:3:y:2013:i:3:p:139-145
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    References listed on IDEAS

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    1. Ayesha Hamid & Omar Masood, 2011. "Selection criteria for Islamic home financing: a case study of Pakistan," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 3(2), pages 117-130, June.
    2. Munawar Iqbal & Philip Molyneux, 2005. "Thirty Years of Islamic Banking," Palgrave Macmillan Studies in Banking and Financial Institutions, Palgrave Macmillan, number 978-0-230-50322-9, June.
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    Cited by:

    1. Mahiswaran Selvanathan & Dineswary Nadarajan & Amelia Farzana Mohd Zamri & Subaashnii Suppramaniam & Ahmad Muzammir Muhammad, 2018. "An Exploratory Study on Customers’ Selection in Choosing Islamic Banking," International Business Research, Canadian Center of Science and Education, vol. 11(5), pages 42-49, May.
    2. Hajime Kamiyama & Kenichi Kashiwagi, 2019. "Factors affecting customers’ continued intentions to use Islamic banks," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 24(3), pages 59-68, December.
    3. Sayed Al-Hunnayan & Abdullah Al-Mutairi, 2016. "Attitudes of Customers towards Islamic Banks in Kuwait," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(11), pages 1-59, October.
    4. Awais Ur Rehman & Saqib Farid & Muhammad Abubakr Naeem, 2022. "The link between corporate governance, corporate social sustainability and credit risk of Islamic bonds," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 18(12), pages 5990-6014, May.
    5. Alimusa, La Ode, 2019. "Determinants of Muslim Entrepreneurs Decisions 0n Sharia Bank Financing and It's Effect 0n Business Performance," OSF Preprints ja87d, Center for Open Science.

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