The Perspective Of Muslims And Nonmuslims Towards Islamic House Financing- A Case Study Of Hong Leong Bank And Hong Leong Islamic Bank Customers
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Date
2017-05
Authors
Abd Aziz, Noriza
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
The main purpose of this study was to identify and determine the level of
awareness and understanding and also to explore the differences in perception and
attitude, between Muslim and non-Muslim customers towards Islamic house financing
in Hong Leong Bank Berhad and Hong Leong Islamic Bank Berhad. This study had
also focused on the effect of promotion and service that attract and influence the
decision-choice of Muslim and non-Muslim customers towards Islamic banking
products, especially Islamic house financing. Several earlier studies had found that
despite a relatively long history of exposure to Islamic banking system among
Malaysian public, awareness, perception and understanding of Muslim and non-
Muslim customers of Islamic banking products are still minimal. Previous studies have
found that the majority of Muslim customers subscribed to Islamic banking products
as a result of their religious awareness on the importance of avoiding the interest-based
banking activities offered by conventional banks. These studies also found that Islamic
banking products were chosen by non-Muslim customers on the basis of quality of
service and reputation of the banks. This study had focused on the customers of HLBB
and HLIB. These banks are owned and managed by non-Muslim and the banking
group is the second largest Chinese-owned bank in Malaysia. HLBB was the 3rd bank
granted an Islamic bank license by BNM to open an Islamic banking subsidiary, HLIB
(Salahuddin Ahmed, 2006). A total of 500 questionnaires were distributed at HLBB
and HLIB branches in Kangar (Perlis), Alor Star, Jitra and Kulim (Kedah), Loan
Centre in Bandar Sunway Seberang Jaya and George Town Light Street (Penang) and
Bangsar (Kuala Lumpur). However, only 402 questionnaires were returned completed.
A descriptive study had been carried out on a total of 41 items in the questionnaire.
These items were grouped into five main variables – perception, awareness,
understanding, promotion and service. SPSS 20.0 was used for data analysis. Primary
data was used in this study comprised of the self-administered questionnaire. Factor
Analyses were used to measure the validity and normality of all the questions asked
in the survey (Bartlett’s test and Kaiser-Meyer-Olkin test – with result greater than
0.6). Reliability Test, using Cronbach’s Alpha, was applied to examine the level of
consistency. Descriptive analysis was undertaken to identify the respondent’s
demographic background. SSPS version 20.0, cross tabulation and One-Way Anova
analyses were used to measure the differences between Muslim and non-Muslim
customers.
Description
Keywords
The perspective of muslims and nonmuslims , towards islamic house Financing