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This method assure transparency on how the data is collected and the final number of papers
included for review. Imam and Kpodar ( 2013 ) show that factors contributing to the development of
Islamic banking in a given country include the size of the Muslim population, income per capita, the
level of interest rates, whether the country is a net exporter of oil, the size of trade with the Middle
East, the level of economic stability, and proximity to Malaysia and Bahrain (two Islamic financial
centers). Download Free PDF View PDF The Application Towards Improving Notice Of Meetin
SHAMSUDDEEN MAGAJI Download Free PDF View PDF Structural classification as a
preservation means of Malaysian Folktales Harryizman Harun Malaysian folktales are one of the
intangible cultural heritages that reflect and carry the lineage of the past generations to the present.
Sharia law is based on the Holy Book of Muslims Quran and on the traditional teaching of Prophet
Muhamad in the so called Sunnah. His current research focuses on corporate governance,
privatization, corporate social responsibility, and formal and informal institutions and their effects on
corporate policies and firm performance. However, they also counterargue that Islamic banks may
have less financial strength, given their restrictions to certain asset classes, prohibition from using
derivatives as hedging instruments, and the moral hazard issues embedded in Islamic contracts. They
show that, during the crisis, Islamic banks had a higher rate of failure, and therefore shorter survival
times, than conventional banks, contradicting Pappas et al. ( 2017 ). Regarding resilience, the IFSI
Stability Report 2018 (IFSB, 2018, p. 4) indicates that: “Global Islamic banking has sustained its
resilience, and most of its stability indicators are in comfortable compliance with the minimum
international regulatory requirements. SSBs typically issue recommendations based on their own
interpretation of Sharia law. The bank acts as an intermediary between the client, from which it
receives payments, and the manufacturer, to which it makes installment payments, because it is the
bank that commits to buying the assets. After the crisis, however, Islamic banks underperformed
conventional banks, and lost their cost-efficiency superiority. More than 85 percent of people in this
region are unbankable with majority living in rural area where there are no financial services, be it
formal or informal. Thus, the blockchain will automatically ensure the shariah compliance of business
activities, assess business risk, and provide relevant information for the investor to decide their
participation in the business. Hence, this paper aims to answer two objectives; first, to identify the
level of understanding and awareness of Muslim in Malaysia on waqf Istibdal. Nevertheless,
cryptocurrencies are heavily criticized for their functional point of view for the following main
reasons ( Abozaid, 2020; Y. S. Abubakar et al., 2018 ). First, all the products within the
nomenclature of cryptocurrency are derived from financial engineering without being backed by real
economic assets; thus, it does not fit within Islamic finance. First, because Islamic banks may exhibit
a greater capacity to withstand negative shocks that could contribute to financial instability, liquidity
creation by Islamic banks may contribute less to financial instability than conventional banks. In
doing so, this study clarified the perspective of Islamic banks. The study by Aziz (2018) found that
customer loyalty and communication are mediated by the factors that influence the co-production of
services. Financial Policy and Regulation Department (2011) Central Bank of Nigeria: Guidelines for
the Regulation and Supervision of Non-interest (Islamic) Microfinance Banks in Nigeria. The study
makes a theoretical contribution through the development, empirical testing and interpretation of
results arising from the relationships identified between the objectives of Islamic banking, customer
satisfaction and customer loyalty in South Africa as the country is situated within an emerging
African market. Understanding Women's Entrepreneurial Intention in SMEs in Sarawak Assoc Prof.
Topics concern over the past years. 4.?Content analysis of Islamic FinTech publications This section
is divided into two sections. Table 3 shows that convergent validity has been established for the
measurement model. Hassan (2015) suggests the possibility of including poor Muslims in mainstream
financial services through innovative approaches. This effort is predicted to lead to a massive
improvement in zakat collection and distribution for society. In addition, they observe that Islamic
banks exhibit lower leverage across different sub-periods around the GFC. Having an awareness that
a brand is halaal (lawful) rather than just being brand loyal was found to influence customer loyalty
significantly. However, they also offer the usual banking services, such as commercial and other
banking services, to maximise profits in a manner that does not contradict Sharia ( Farook and
Shikoh, 2011; Henderson, 2012; Imam and Kpodar, 2013; Kahf, 1999; Schottmann, 2014 ). Looking
at different sectors of the Islamic banking industry, the IFSI Stability Report (IFSB, 2018 ) shows
that assets and financing each grew at a compounded rate of 8.8 percent between 2013 and 2017,
while deposits grew at a compounded rate of 9.4 percent over the same period. The distance between
nodes represents the linkage between the countries, and the smaller distance indicates the higher
linkage and the strong relationship between them ( Van Eck and Waltman, 2014 ). Customer
satisfaction could be increased by ensuring that the Islamic bank focuses on objectives that line up
with the Sharia, as shown in the result of the study.
Journal of Accounting and Finance in Emerging Economies, 7(4), 921-930. Share of Islamic Banks’
Assets in Total Banking Sector Assets (%). Furthermore, in line with the principle of risk sharing, an
Islamic bank is exposed to the liability of the assets it purchases and sells to clients. This, no doubt,
prohibits the receipt or payment of interest as the nucleus of the system, but is supported by other
principles of Islamic doctrine advocating risk sharing, individuals' rights and duties, property rights,
and the sanctity of contracts. Unlike the conventional scheme, which was administered by the
government, the Islamic scheme was organized and managed by Islamic banks. The authors interpret
this evidence as follows: Islamic banks were less exposed to the GFC because, unlike conventional
banks, they were constrained from trading in risky, highly leveraged asset classes. Malaysia was
cited as the centre of collaboration with the United States, Indonesia, Bangladesh, Japan, and
Finland's research partnership in the green cluster. This is a well-known challenge in the Islamic
banking sector in particular; however, this research shows that little is being done in order to achieve
unified digitalization in operations. The higher liquidity buffers insulated Islamic banks from some
of the most negative impacts. To browse Academia.edu and the wider internet faster and more
securely, please take a few seconds to upgrade your browser. He is also the holder of the Emerging
Scholars Award by the Federal Reserve and the Conference of State Bank Supervisors. Objectives of
Islamic banking, customer satisfaction and customer 2. Since their inception, these banks have
announced-through their theoreticians-their intention to achieve economic and social development
based on their commitment to the principles and provisions of Islamic Sharia. For example, why are
Islamic debt instruments more prevalent than equity instruments. They gather panel data from 55
OIC countries and conclude by applying panel VAR, IRF's and granger causality tests. Those
charged with governance should also understand other factors contributing to customer satisfaction
at an individual level, such as quality of services delivered, product expectations and social welfare
expectations. You can download the paper by clicking the button above. P2P lending is one of the
financial services provided by FinTech, it is predicted to become the most convenient financial
platform for the unbanked community. Although high returns are more promising in mudaraba, this
financing mode has higher risk of returns. Abstrak. Risiko Pembiayaan Profit Loss Sharing: Kasus
Indonesia. Non-probability sampling techniques, particularly purposive and snowball sampling, were
used to identify the respondents, as a sampling frame could not be produced. In terms of the
financial stability implications, Berger et al. ( 2017 ) also provide two conflicting predictions.
Therefore, this study suggests that extensive research is urgently needed to explain the predicting
factors of SMEs adopting FinTech platforms. The second sub-theme in this stream is crowdfunding.
The results of this study prove that: 1) In partial Short Masage System banking (SMS-Banking) built
by PT. Researchers have also concluded that behavioral elements in decision making tend to be more
influential on individual investors than large investors or institutional investors. We employ RStudio
software to achieve the following research objectives (RO1.1 and RO1.2), whereas (RO1.3 and
RO2) are addressed using VOSviewer software. We acknowledge the research assistance provided
by Makeen Huda and Nicolas Duvernois at the University of New Orleans. The role of Islamic
FinTech and its adoption by the Islamic financial institutions will offer remarkable solution for
economic activities due to COVID-19. The findings of the study conducted by Banna et al. (2020)
suggest that barring a few countries in the Middle East and MENA region, most of the selected
countries have some inconsistent trends in the Islamic banking sector. Note: This table shows
regression results relating Islamic banks to stock liquidity. The term “Islamic” stands to differentiate
between conventional and shariah-compliant FinTech operators.
Few studies have also assessed the differences between Islamic and conventional cryptocurrencies.
In short, the adoption of FinTech will elevate the development and efficiency of Islamic financial
institutions, which will lead to the improvement of Islamic finance institutions' role in economic
growth. In terms of the theoretical contribution, the study finds that the construct related to the
objectives of Islamic banking is a positive and significant contributor to both customer satisfaction
and customer loyalty. Under the last type of debt contract, Istisna, both payment and delivery occur
in the future. In detail, M. K. Hassan, Rabbani, et al. (2020) offers four potential Islamic finance
instruments merged with FinTech in combating the economic downturn due to COVID-19, namely,
Islamic cryptocurrency, a blockchain-based system for zakat and qardh-al-hasan, smart contracts, and
smart Islamic banking. Because the basic functions of riba, Maysir, and gharar are barred from
forming part of the FinTech component, adapting FinTech in Islamic banking poses issues in terms
of Shariah compliance. In doing so, this study clarified the perspective of Islamic banks. Moreover,
this study uses content analysis and SLR as it allows the researcher to categorize the literature,
analyze the gaps in existing studies, and offer recommendations for the research topic ( Paul and
Criado, 2020 ). Previous studies highlighted the importance of implementing FinTech in Islamic
financial institutions for financial inclusion. Valid constructs had been developed in this study and a
new variable i.e. underlying principles of Islamic knowledge was utilized and it was found
significant influence on product knowledge. With the advent of cryptocurrency and developments
around blockchain, technology experts, industry professionals along shariah scholars have been
working to introduce FinTech in shariah - compliant financing products and services. Bitar, Hassan,
and Walker ( 2017 ), for example, argue that conventional bank accounting indicators used in the
literature are relatively one-dimensional, and may lead to contradictory results. It starts by defining
both systems and describing their general stances. These findings are aligned with the results
obtained by Kashif et al. (2015). Further, Tabrani et al. (2018) found that no relationship exists
between trust and customer loyalty; however, commitment and customer intimacy had a mediating
effect between trust and loyalty. In turn, current deposits dominated the input side, thus
transforming Islamic banks into a form similar to commercial banks. A Musharaka contract is an
alternative profit-and-loss partnership arrangement. This study employed secondary and primary data
and secondary data sources such as journal articles, books, and the websites of international financial
institutions and commercial banks, which are used in this study. Rejecting interest policy as an
instrument for any business activity, Islamic banking is based on the substitutions for interest that are
profit, rental, commission, and wage, all of which are regarded as legitimate earnings of trade, its
derivatives, joint venture and partnerships, leasing, and other lawful and real economic activities.
The second sub-stream addressed Islamic FinTech development and its impact on Islamic finance
institutions. Therefore, one can say a sample of at least 24 banks from each banking system is
acceptable. In conclusion, research related to FinTech and the Islamic finance industry has spread
globally and attracted researchers from various countries, including non-Muslim majority countries.
3.2. Research main theme The most discussed topics in Islamic FinTech research are presented using
keyword co-occurrence analysis. Because Islamic banks are subject to an extra monitoring layer by
the SSB, which ensures compliance with moral values, and because of the overall moral
accountability of the managers and board members, one would expect fewer agency problems and
hence higher earnings quality. Furthermore, they found a significant positive bilateral causal
relationship between client satisfaction and banking efficiency. Amin et al. (2013) analysed the
relationship between customer satisfaction at Islamic banks with image, trust and customer loyalty
for Muslim and non-Muslim customers. Islamic Banking is growing with fast speed all over the
world particularly in Pakistan while the conventional banking is surprisingly declining in the
countries which are the champion of capitalism and founder of interest-based financial system.
Therefore, a study is conducted to engender a structural classification of the folktales with an aim to
preserve such valuable heritage. Funding statement This research received no specific prior grant
from any funding agency in the public, commercial, or not-for-profit sectors. The authors therefore
propose using a principal component analysis that encompasses twenty indicators of bank financial
strength. The international comparison of Islamic and conventional banks in terms of cost and profit
efficiency shows that Islamic banks in advanced economies “seem to be more efficient than those in
other countries. Islamic Bank enjoyed a brief period of success in the 1990s; however,
mismanagement caused the banks failure ( Vawda, 2009 ). This, in turn, has implications for
economic development (Petersen and Rajan, 1995; Jayaratne and Strahan, 1996; Cetorelli and
Gambera, 2001 ) and financial development (Levine, 2005 ). 12.6 Conclusion and Directions for
Future Research To conclude, we first survey recent empirical literature on the micro and macro
impact of Islamic banking.
They show that firms engaged in CSR activities are less likely to manipulate earnings, and that being
included in a Sharia index does not play an important role in determining earnings quality. Recent
growth in the mobile applications and usage of website among users have hinted the inclusion of
Fintech revelation among the global financial sector. Mustafa Raza Rabbani et al., 2021a, Rabbani et
al., 2021b proposed a model of utilizing Islamic finance as an instrument in combating the COVID-
19's impact and revealed that Islamic FinTech will accelerate the collection and distribution of
funding for the community in the short, medium, and long term. With the advent of cryptocurrency
and developments around blockchain, technology experts, industry professionals along shariah
scholars have been working to introduce FinTech in shariah - compliant financing products and
services. Debt financing can play a disciplinary role through interest payment obligations, inducing
managers to perform and improve productivity. Malaysia was cited as the centre of collaboration
with the United States, Indonesia, Bangladesh, Japan, and Finland's research partnership in the green
cluster. Consequently, the product becomes Shari’ah compliant but the core attributes of Islamic
Economic System i.e. Justice and Social Welfare etc. Only Muslim customers were included in the
study; consequently, future studies should include other stakeholder groups of the Islamic banks,
including comparing results between each group. Also, the social role hoped for by Islamic banks has
become closer to stagnation than to hoped-for mobility. Finally, because interest is prohibited,
Islamic banks cannot issue debt to finance assets, which also mitigates the creation of leverage.
Specifically, Kirchner (2021) ascertained that the shariah compliances of cryptocurrency still become
a debate amongst the shariah scholars. Hasil penelitian menunjukkan bahwa risiko pengembalian
pada pembiayaan mudharaba lebih berfluktuasi dibanding musharakah yang secara potensial
didorong oleh agency problem. Hence, this paper aims to answer two objectives; first, to identify the
level of understanding and awareness of Muslim in Malaysia on waqf Istibdal. In addition, Islamic
bank market share is positively related to fund mobilization, credit allocation, economic growth, and
poverty alleviation in countries with relatively greater proportions of Muslims in their populations,
countries with higher uncertainty avoidance indices, and countries with lower GDP per capita. In
premodern societies, when transaction costs of ruses to circumvent prohibitions were substantial,
prohibitions could serve their intended regulatory purpose, albeit imperfectly. Islamic banks follow
the religious principles of equity, participation, and ownership as embedded in Sharia law. These
included difficulties in accumulating the information to evaluate customers and their projects,
difficulties in encouraging borrowers to repay, and difficulties with seizing collateral and using legal
action in collecting bad debts. Finally, studies should be conducted to develop models relevant to the
South African context to develop the Islamic banking industry. They show that, during the crisis,
Islamic banks had a higher rate of failure, and therefore shorter survival times, than conventional
banks, contradicting Pappas et al. ( 2017 ). Regarding resilience, the IFSI Stability Report 2018
(IFSB, 2018, p. 4) indicates that: “Global Islamic banking has sustained its resilience, and most of
its stability indicators are in comfortable compliance with the minimum international regulatory
requirements. Download Free PDF View PDF An identification task toward engendering a
Malaysian folktale classification system for preservation Harryizman Harun, zulikha jamaludin
Malaysian folktales are one of the intangible cultural heritages that reflect and convey lineage of the
past generations to the present. Moreover, this study also suggested that P2P lending platforms
collaborate with notaries or legal parties to promote safety and speed up transactions. Islamic Bank
and Albaraka Bank are considered the first official Islamic banks to enter the South African market
after each bank was awarded banking licenses in 1989. Help Center Here you'll find an answer to
your question. Financial inclusion can be achieved by combining technology with Islamic finance
and Islamic FinTech is the way to go forward ( Kim et al., 2018 ). There are also studies on the role
of Islamic versus conventional finance in financial inclusion ( Nawaz, 2017 ). The higher profitability
of conventional banks is due to the higher net financing and better asset quality that they have. In so
far as the practical contributions are concerned, this study provides valuable insights to those
charged with governance at Islamic banks in understanding the importance of aligning the core
objectives of the Islamic bank with the tenets of the Sharia, as this plays a significant role in
ensuring that customers are both satisfied and loyal. In section 12.3, we discuss its primary
characteristics, including its underlying principles and common financial products. Both banks are
then benchmarked against the conventional banks' performance over 5 years 2004-2008. Jaame
Limited suffered from some governance issues, such as making inexperienced business decisions
including displaying limited professionalism ( Vawda, 2009 ).
Field research to collect such data on Islamic banks, identifying all aspects of engagement toward
the community, could assist in this endeavor. 12.4.6 Liquidity Creation Banks provide two
overlapping functions in the economy: (1) creating liquidity to provide the non-bank public with
access to liquid funds, and (2) transforming risk to provide safer investments. One could also
explore whether the quality of financial information reporting is comparable for Islamic banks across
time, including during crises. 12.4.5 Corporate Social Responsibility With its principles of equity and
participation, Islamic banking is viewed as a type of ethical banking. Further studies in this area
could be enlightening, particularly by exploring the differential impact of Islamic and conventional
banks during various banking crises across countries. 12.4.3 Sharia Supervisory Board Corporate
Governance and Risk-Taking Islamic banks have a particular governance structure that involves an
additional layer of monitoring of their activities. Here, Pratchett biographer Marc Burrows highlights
five of Terry Pratchett's best books. As a result, Murabaha became an alternative to credit on the
output side. In contrast, for an Islamic bank, the use (by entrepreneurs) and mobilization (by
depositors) of funds intermediated by the bank are structured as profit-sharing contracts among
depositors, the bank, and entrepreneurs. Moreover, this study also describes several challenges in
Islamic FinTech's development, including weak regulation, inefficient permit procedures, and a
higher rate of illegal FinTech practices. Fintech history starts as early as 1866, Consumer
International (2017) divided the FinTech developmental period into three phases. In addition, Islamic
banks cannot access the interbank market for liquidity because of its interest-bearing features. In
addition, Islamic bank market share is positively related to fund mobilization, credit allocation,
economic growth, and poverty alleviation in countries with relatively greater proportions of Muslims
in their populations, countries with higher uncertainty avoidance indices, and countries with lower
GDP per capita. Objectives of Islamic banking, customer satisfaction and customer 2. The third
phase, from 2008 onwards, is marked by the use of high-tech by newer entrants with different
characteristics, creating a new competitive landscape for financial institutions. Having an awareness
that a brand is halaal (lawful) rather than just being brand loyal was found to influence customer
loyalty significantly. Table 3 shows that convergent validity has been established for the
measurement model. Their evidence also suggests that Islamic banks were able to mobilize the
savings of Muslim individuals. However, in a study on UAE banks, Nobanee and Ellili ( 2016 ) find
no evidence of a relation between Islamic banks’ performance and CSR disclosure. Finding shows
that there are eight factors that might influence IT adoption by internal auditors in Malaysian public
sectors. Equity crowdfunding can be a good source of external financing, especially for halal SMEs,
which struggle to get financing from financial institutions. Figure 1 shows data collection steps for
bibliometrics and SLR with PRISMA. Also, the social role hoped for by Islamic banks has become
closer to stagnation than to hoped-for mobility. Table 6 Future research direction. 5.?Conclusion This
study portrayed a comprehensive literature development on Islamic FinTech sourced from the
Scopus databases, covering a period from 2017 to 2022. According to Hussain, Shahmoradi, and
Turk ( 2015, p. 9), “Such transactions were originally allowed to meet the financing needs of small
farmers as they were unable to yield adequate returns until several periods after the initial
investment.” To be Sharia -compliant, payment under these contracts must be made in full at the
beginning of the contract period. The literature indicates that service quality is a primary reason
customers are satisfied with their Islamic banks ( Iqbal et al., 2018; Saqib et al., 2016 ). Customers
place greater importance on services offered of a conventional nature rather than if the Islamic bank
was Shari?ah-compliant ( Ullah and Lee, 2012 ). First, because Islamic banks may exhibit a greater
capacity to withstand negative shocks that could contribute to financial instability, liquidity creation
by Islamic banks may contribute less to financial instability than conventional banks. See Full PDF
Download PDF See Full PDF Download PDF Related Papers International Journal of Economics
and Business Administration FinTech, Blockchain and Islamic Finance: An Extensive Literature
Review Eleftherios Thalassinos Download Free PDF View PDF ETIKONOMI Islamic Fintech
Research: Systematic Review using Mainstream Databases egi firmansyah The number of Islamic
financial technology (fintech) study growsalong with technological advancement and fintech itself.
Banna et al. (2020), and Arsyianti and Kassim (2018) analyze the role of Islamic banking in financial
inclusion and how Islamic banking can be used as a tool for financial inclusion. The model validates
the relationships between the objectives of Islamic banking with customer satisfaction and customer
loyalty, including the relationship between customer satisfaction and customer loyalty in an emerging
South African Islamic banking market. Acknowledgements We thank Heliyon for waiving the article
publication fee for manuscripts published in this special issue entitled: “Islamic finance in the post-
COVID world: Opportunities and challenges”. The absence of a measuring tool of Islamic financial
literacy is an important issue because of financial literacy proved to be a positive influence on
decisions and financial behavior. However, Islamic banks suffer from certain structural weaknesses
that can affect their performance, although these weaknesses should resolve organically as the
industry matures.
On the asset side, we find Islamic financing and investing accounts. Report bugs here All feedback is
valuable Please share your general feedback Join us on our journey Platform update page. The
theoreticians' interests were towards long-term investment and partnership-based contracts as a
foundation for mobilizing and using financial resources to achieve development. However, until the
present there is no tool to measure the level of financial literacy on financial service products from
Islamic points of view. They found that factors such as trust, satisfaction and image of the Islamic
bank significantly enhanced customer loyalty. These Islamic banking contracts will propose that
bank’s profit is positive and statistically significant with financing contracts and mudharabah deposit
contract against assets. The authors contend that the higher government ownership associated with
conventional banks, which provides them with an implicit bailout guarantee in cases of distress, may
explain why their failure rate is lower than that of Islamic banks. 12.4.2 Stability and Performance
around the GFC Several theoretical arguments suggest that Islamic banks should be more resilient to
crises. This ease to explore the opportunities, improve the levels of abilities and motivation of the
rural people, and thus quickly diffuse sustainable energy products in the rural area. While it
represents a small proportion of the global finance market (estimated at 1%-5% of global share), the
Islamic finance industry has experienced double-digit rates of growth annually in recent years
(estimated at 10%- 20% annual growth). A Review Of The Literature.. - Potential for Islamic
Banking in Macedonia.. Read more Advertisement Advertisement Advertisement Issuu converts
static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more.
Data used is secondary data obtained from the Financial Services Authority's 2009-2014 publication.
However, in the current situation, Islamic banking and finance (IBF) is apparently mixing up the
concept of social welfare and the conventional ideology of wealth maximisation altogether due to
the unavoidable need to compete with the conventional financial system and the force of
convergence between those two. However, because Islamic financial institutions are more risk-averse
than conventional banks, this “might limit entrepreneurship by encouraging borrowers to select low-
risk projects or to invest excessively in tangible assets. The term “Islamic banking” refers generally to
banking operations conducted under Sharia law, which mandates banking transactions be subject to
three sets of constraints. The distance between nodes represents the linkage between the countries,
and the smaller distance indicates the higher linkage and the strong relationship between them ( Van
Eck and Waltman, 2014 ). Evidence seems to vary with geographic region, bank size, and sample
size. Second, to analyse the demographic differences of Muslim in Malaysia towards waqf Istibdal.
Research that empirically assesses the investor behavior using a quasi-qualitative approach is still
scarce; this topic becomes significant to investigate to obtain comprehensive knowledge regarding
Muslim intention to adopt bitcoin. The charter should be available on the website of the Islamic bank
and or any other relevant media platform. The global economic crisis that began in 2008, and its
consequences, succeeded to close down many large banking systems. On the other hand, Islamic
banks made a great growth, and their bank assets according to estimates, are worth about 1,800
billion. Future studies should expand this line of study to examine the best strategy that Islamic
Banks can implement in order to attract more non-Muslims borrowers to apply financing from
Islamic Banks even though Islamic Banks charging higher profit mark-up. Pada satu sisi perbankan
Islam lebih aman untuk mengalokasikan dananya pada kontrak musharaka sebagai alternatif
murabaha, namun kontrak musharaka kurang menarik karena memiliki potensi pengembalian yang
rendah. The objectives of Islamic banking are positively related to customer loyalty. Some authors
argue that it is because of their higher capitalization and asset quality that Islamic banks were able to
outperform their conventional counterparts during the GFC (e.g., Bourkhis and Nabi, 2013 ). These
clusters complement those provided by Amin et al. (2009) as the authors categorise the reasons for
customers engaging with an Islamic bank based on religion, service quality and pricing of products.
Their evidence also suggests that Islamic banks were able to mobilize the savings of Muslim
individuals. Their findings revealed that satisfaction and image, image and trust and trust and
customer loyalty were related to each other, but significant differences existed between Muslim and
non-Muslim customers. Others influencing factors include knowledge, awareness, compatibility,
religiosity and perceived government support. They show that firms engaged in CSR activities are
less likely to manipulate earnings, and that being included in a Sharia index does not play an
important role in determining earnings quality. Instead, Srairi ( 2010 ) shows that Islamic banks are,
on average, less cost- and profit-efficient than conventional banks.