Ethicality of Islamic banking and finance products and services: a survey of consumers’ perceptions
Financial ethics emphasises the importance of developing and sustaining ethics in financial transactions. The term “financial ethics” can be understood as ethics as it is applies to ethical and moral issues in finance. In the context of Islamic finance, Islamic financial institutions that are govern...
| Main Authors: | , , |
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| Format: | Proceeding Paper |
| Language: | English |
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Sultan Sharif Ali Islamic University (UNISSA) Brunei
2017
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/58553/ http://irep.iium.edu.my/58553/1/58553_Ethicality%20of%20Islamic%20Banking.pdf |
| _version_ | 1848785135245197312 |
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| author | Sumairi, Nor Sazwana Musa, Muhammad Adli Ahmad, Nadzrah |
| author_facet | Sumairi, Nor Sazwana Musa, Muhammad Adli Ahmad, Nadzrah |
| author_sort | Sumairi, Nor Sazwana |
| building | IIUM Repository |
| collection | Online Access |
| description | Financial ethics emphasises the importance of developing and sustaining ethics in financial transactions. The term “financial ethics” can be understood as ethics as it is applies to ethical and moral issues in finance. In the context of Islamic finance, Islamic financial institutions that are governed by the principle of the sharī‘ah, are expected to have inherently strong ethical roots such as promoting justice and void of any illegal and unethical elements. Moreover, Islamic finance is frequently associated if not equated to ethical banking. Nonetheless, critics have highlighted the failure of Islamic financial institutions to promote such values. Therefore, Islamic banking should formulate strategies to educate and offer unique products and services differentiated by underlying financial ethics to attract more consumers to subscribe to Islamic banking products and services. This paper analyses how consumer perceive the ethicality of the products and services offered by Islamic financial institutions. It seeks to express the importance of ethical finance and the need for Islamic finance to align with ethical banking. Quantitative method is employed by surveying consumer perception on the ethicality and “Islamicness” of Islamic finance products and services. The target respondents are IIUM employees who were surveyed using a structured close-ended questionnaire. The findings suggest that ethics could well be considered as a factor which encourage the public to patronize Islamic financial institutions. Thus, Islamic financial institutions must demonstrate their commitments and efforts in providing added values to customers. |
| first_indexed | 2025-11-14T16:48:19Z |
| format | Proceeding Paper |
| id | iium-58553 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T16:48:19Z |
| publishDate | 2017 |
| publisher | Sultan Sharif Ali Islamic University (UNISSA) Brunei |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-585532017-09-29T07:56:20Z http://irep.iium.edu.my/58553/ Ethicality of Islamic banking and finance products and services: a survey of consumers’ perceptions Sumairi, Nor Sazwana Musa, Muhammad Adli Ahmad, Nadzrah BP173.75 Islam and economics HG Finance HG4001 Financial management. Business finance. Corporation finance. Financial ethics emphasises the importance of developing and sustaining ethics in financial transactions. The term “financial ethics” can be understood as ethics as it is applies to ethical and moral issues in finance. In the context of Islamic finance, Islamic financial institutions that are governed by the principle of the sharī‘ah, are expected to have inherently strong ethical roots such as promoting justice and void of any illegal and unethical elements. Moreover, Islamic finance is frequently associated if not equated to ethical banking. Nonetheless, critics have highlighted the failure of Islamic financial institutions to promote such values. Therefore, Islamic banking should formulate strategies to educate and offer unique products and services differentiated by underlying financial ethics to attract more consumers to subscribe to Islamic banking products and services. This paper analyses how consumer perceive the ethicality of the products and services offered by Islamic financial institutions. It seeks to express the importance of ethical finance and the need for Islamic finance to align with ethical banking. Quantitative method is employed by surveying consumer perception on the ethicality and “Islamicness” of Islamic finance products and services. The target respondents are IIUM employees who were surveyed using a structured close-ended questionnaire. The findings suggest that ethics could well be considered as a factor which encourage the public to patronize Islamic financial institutions. Thus, Islamic financial institutions must demonstrate their commitments and efforts in providing added values to customers. Sultan Sharif Ali Islamic University (UNISSA) Brunei 2017-05-23 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/58553/1/58553_Ethicality%20of%20Islamic%20Banking.pdf Sumairi, Nor Sazwana and Musa, Muhammad Adli and Ahmad, Nadzrah (2017) Ethicality of Islamic banking and finance products and services: a survey of consumers’ perceptions. In: Conference on Philanthropy for Humanitarian Aid (CONPHA) 2017, 23rd & 24th May 2017, Sultan Sharif Ali Islamic University (UNISSA), Brunei. http://conference.kuis.edu.my/conpha2017/cover-page/proceedings-2-2/ |
| spellingShingle | BP173.75 Islam and economics HG Finance HG4001 Financial management. Business finance. Corporation finance. Sumairi, Nor Sazwana Musa, Muhammad Adli Ahmad, Nadzrah Ethicality of Islamic banking and finance products and services: a survey of consumers’ perceptions |
| title | Ethicality of Islamic banking and finance products and services: a survey of consumers’ perceptions |
| title_full | Ethicality of Islamic banking and finance products and services: a survey of consumers’ perceptions |
| title_fullStr | Ethicality of Islamic banking and finance products and services: a survey of consumers’ perceptions |
| title_full_unstemmed | Ethicality of Islamic banking and finance products and services: a survey of consumers’ perceptions |
| title_short | Ethicality of Islamic banking and finance products and services: a survey of consumers’ perceptions |
| title_sort | ethicality of islamic banking and finance products and services: a survey of consumers’ perceptions |
| topic | BP173.75 Islam and economics HG Finance HG4001 Financial management. Business finance. Corporation finance. |
| url | http://irep.iium.edu.my/58553/ http://irep.iium.edu.my/58553/ http://irep.iium.edu.my/58553/1/58553_Ethicality%20of%20Islamic%20Banking.pdf |