Determinants of Selection and Knowledge Level about Islamic Rural Banks
AbstractThis paper aims to firstly identify the source of knowledge of the respondents on Islamic rural banks. Secondly, this research aims to study the factors considered important by the respondents in selecting Islamic rural banks. Thirdly, this research studies the level of knowledge and awareness of the respondents on the products or contract of Islamic rural banks. Finally, this paper aims to compare the respondents’ knowledge and awareness based on gender, education level, and period of banking in Islamic rural banks. We disseminated questionnaire to 285 customers of Islamic rural banks in several cities in West Java province, Indonesia. The answers are analyzed using descriptive and quantitative method using t-test analysis. Most of our research respondents had ever taken the course or subject in Islamic banking or economics, making them more familiar with the contracts and every aspect of Islamic rural banking. This research also found that the most substantial factor affecting the respondents to choose Islamic rural banking is not sharia compliance. Qardhul Hasan, wadiah, and mudharabah are the most popular contracts among our research respondents, and the level of knowledge and awareness on these three contracts are not significantly different between male and female, between different education level, and between banking experience of the customers. This paper is limited as it does not study the impact of one variable to another. This paper is the one with a focus on the customer of Islamic rural banks, not Islamic commercial banks which are common among researchers.
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