Islamic Banking and Finance: Fundamentals and Contemporary Issues

Attitude of Customers and Bankers towards Islamic Banking in Bangladesh

Table 16: Most of Investment Financing Techniques by Islamic Banks do Not
Share Risk Proportionally
Causes Bankers Customers Total
a) The Insurance Company covers risks of
Islamic banks’ loans.

73% 58% 66%

b) Islamic Banks do not always buy for sale. 15 28 21

c) Buying and Selling arrangements by

Islamic banks are almost risk-free.

9 11 10

d) Islamic banks do business with

depositors money and share risk

3 3 3

Source: Field survey data, 1998. Note: Figure indicates the percentage of total.

Table 17: Many Customers are not interested in Dealing with Islamic Banks as
they feel that only the Name has been Changed and Interest in Real
Sense has not been eliminated
Causes Bankers Customers Total
a) Mark-up profit makes customers
liable for additional payment, which is
same as that of conventional bank’s
fixed interest-based loan.

62% 83% 73%

b) Customers are required to repay banks

money on installment basis

14 7 10

c) Failure of installment payment creates

additional liability

16 6 11

d) The Islamic Banks in most cases do

not consider business loss.

8 4 6

Source: Field survey data, 1998. Note: Figure indicates the percentage of total.