Awareness of Islamic Banking Products Among Muslims: The Case of Australia

Journal of Financial Services Marketing, Vol. 12, No. 1, pp. 65-74, August 2007

14 Pages Posted: 31 May 2011

See all articles by Hussain Gulzar Rammal

Hussain Gulzar Rammal

University of Technology Sydney (UTS)

Ralf Zurbruegg

University of Adelaide; Financial Research Network (FIRN)

Date Written: August 1, 2007

Abstract

The purpose of this study is to analyze Australian Muslims’ awareness of profit-and-loss sharing financial instruments. A sample of 300 Australian Muslims was surveyed. The survey utilized a short questionnaire containing specific questions relating to the willingness of respondents to purchase profit-and-loss sharing Islamic banking products. The results indicate that the majority of the Australian Muslim population sample would be willing to purchase Islamic banking products, but are not properly informed about profit-and-loss sharing instruments. The results further hint towards a lack of understanding of the principles of Islamic finance. This was deduced from the fact that a section of the population stated that they would not be willing to purchase Islamic banking products if credit facilities were not available, or if the banks shared losses as well as profits.

Keywords: Islamic financing, interest-free financing, profit-and-loss sharing, Australia

Suggested Citation

Rammal, Hussain Gulzar and Zurbruegg, Ralf, Awareness of Islamic Banking Products Among Muslims: The Case of Australia (August 1, 2007). Journal of Financial Services Marketing, Vol. 12, No. 1, pp. 65-74, August 2007. Available at SSRN: https://ssrn.com/abstract=1854427

Hussain Gulzar Rammal (Contact Author)

University of Technology Sydney (UTS) ( email )

15 Broadway, Ultimo
PO Box 123
Sydney, NSW 2007
Australia

HOME PAGE: http://www.uts.edu.au/staff/hussain.rammal

Ralf Zurbruegg

University of Adelaide ( email )

233 North Terrace
Department of Finance
Adelaide SA 5005
Australia
+61 8 8303 5535 (Phone)
+61 8 8303 4368 (Fax)

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

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