Non-Muslims Attitude and Perception towards Islamic Banking: A Case of District Peshawar

Abstract

One of the emerging and growing sectors in the world in general and Islamic world, in particular, is Islamic banking and the major targeted customers for them are Muslims. But the current study is an attempt to unearth the attitude and behavior of non-Muslims towards Islamic banking as it is one of the unexplored areas, and in the light of the literature review, it is concluded that very limited studies have been conducted on the issue in general and none in the context of Pakistan. In the first instance, the factors that are being considered by the non-Muslims are found out from the available literature i.e. Religion, Social Pressure, Cost-Benefit Analysis, Advertising, and Banks Reputation. In the second phase, the relationship between the mentioned independent variables and dependent variable, Acceptance of Islamic Banking among non-Muslims was checked statistically through regression using SPSS. The findings suggest that factor, cost/benefit analysis, the bank’s reputation, and advertising are valued the most by Non-Muslims in selecting an Islamic Bank.   While the findings also suggest that the factors, Religion, and Social Pressure are valued the least by Non-Muslims in selecting an Islamic bank.

       Keywords: islamic banking, religion, non-muslims, acceptance of islamic banking, cost benefit analysis, social presure