Introducing Islamic Banking in the Czech Republic: a Customer Perspective Study
Volume 02 Issue 2
Authors
Vladimir Hubik
Keywords
banking, Islamic banking, customer perception, Czech republic, interest-free, new banking system
Citation in APA style
Hubik, V. (2024). Introducing Islamic Banking in the Czech Republic: a Customer Perspective Study. Journal of Business Sectors, 2(2), 73–81. https://doi.org/10.62222/ALAK1693
DOI
Abstract
Research background:
Islamic banking is booming industry worldwide, yet in Czech republic, Islamic banking is not present in the banking model. In this context, there is a scientific interest to investigate possibility of implementing Islamic banking principles into Czech banking legal infrastructure and opening Czech markets to diverse banking models.
Purpose of the article:
The objective of this article is to define and measure customer perceptions regarding the implementation of the Islamic banking system in the Czech market. The primary goal is to investigate the preferences of Czech banking customers in relation to this system. This article may play a pivotal role in further future discussions and academic papers.
Methods:
To analyse behaviour of bank customers, an empirical analysis was used, which collected responses in October 2024. The respondents were selected using a random sampling methodology to ensure representativeness. The survey focused on measuring the respondents' knowledge, opinions, and attitudes toward Islamic banking. The questionnaire included structured questions covering key areas such as ethical preferences, awareness of Islamic banking principles, and perceptions of its implementation in the Czech market. To analyse the data, descriptive statistical techniques were employed. The findings were evaluated using Adjusted R Square values to measure explanatory power, while statistical significance was assessed using p-values from F-tests. These methods provided robust insights into the factors influencing customer perceptions of Islamic banking and its ethical dimensions, ensuring the validity and reliability of the results.
Findings & Value added:
The survey results indicate that awareness of Islamic banking in the Czech republic is remarkably low, with the majority of respondents having limited knowledge of its principles. Despite this lack of familiarity, the study revealed a significant interest in ethical banking practices among Czech consumers. Islamic banking, with its emphasis on risk-sharing and prohibition of interest, aligns with these ethical preferences, suggesting a potential market for its introduction. Additionally, respondents viewed Islamic banking as a potential tool for enhancing the ethical standards of the Czech banking sector, highlighting its appeal as an alternative to conventional banking practices. By combining empirical data with theoretical analysis, the research offers valuable insights for policymakers, financial institutions, and academic researchers interested in diversifying the banking sector and promoting sustainable financial practices. The article is in line with the focus of the Journal of Business Sectors, which also explores innovative approaches in banking and finance. The study examines the adoption of Islamic banking in the Czech context, a topic relevant to business sectors and financial institutions.