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Hardius Usman: The Role of Religious Norm on Selecting the Islamic Bank  31

THE ROLE OF RELIGIOUS NORMS ON SELECTING THE 
ISLAMIC BANK 

Hardius Usman1

Abstract. The Role of Religious Norm in Selection of Islamic Banking. The 
aims of this study are to examine Muslim’s religious norms regarding to their belief 
on the law of the prohibition of bank interest, and to investigate the effect of 
religius norms on customers’ decision in using the Islamic banking services. This 
study employs natural experimental design with Analysis of Variance (ANOVA), 
and Pearson Chi-Square Test. The exploratory study also conducted to support the 
quantitative analysis. The results show that the religious norms among Muslims 
classified into two categories,  i.e: traditional and contemporary group and the 
religious norm of the Muslim have significant affects on the decision in using the 
Islamic banks.

Keywords: Islamic Bank, Religious Norms, Traditional Group, Contemporary 
Group

Abstract. Peran Norma Religius Dalam Pemilihan Bank Syariah. Tujuan 
dari penelitian ini adalah untuk memberi gambaran norma religius muslim di 
Indonesia terhadap fatwa pengharaman bunga bank; dan mempelajari hubungan 
norma religius tersebut terhadap pemilihan bank. Penelitian mengaplikasikan 
natural experiment design dengan Analysis of Variance (ANOVA), dan Pearson 
Chi-Square Test. Guna mendukung analisis kuantitatif, penelitian ini juga 
melakukan Exploratory Study. Hasil penelitian menunjukkan bahwa norma 
religius muslim dapat dibagi menjadi dua kelompok, yaitu: kelompok tradisional 
dan kontemporer, dan norma religius mempunyai pengaruh signifikan terhadap 
keputusan muslim untuk menggunakan bank syariah.

Kata Kunci: Bank Islam, Norma Religius, Kelompok Tradisional, Kelompok 
Kontemporer

First draft: October, 4th 2014, Revision: December, 5th 2014, Accepted: December, 15th  
2014 

1 Pascasarjana Universitas Indonesia KajianTimur Tengah dan Islam, Jl. Salemba Raya 4, 
Jakarta. 

Email: hardius_u@yahoo.com



Al-Iqtishad: Vol. VII No. 1, Januari 2015 32

Introduction

The Islamic Bank is a banking system that operates under Islamic law, or 
known as ‘sharia’ (Haque, Jamil and Ahmad, 2007; Hassan, Chachi and Latiff, 
2008; Marimuthu, Jing, Gie, Mun, and Ping, 2010; Manzoor, Aqeel and Sattar, 
2010; Idris, Naziman, Januri, Asari, Muhammad, dan Jusoff, 2011). Under the 
Islamic law, the Islamic banks are prohibited to trade based on interest (Haron, 
1997; Manzoor, et. al., 2010; Idris, et. al., 2011) which is the basic distinction 
between Islamic banks and conventional banks (Hassan, et. al, 2008; Manzoor, 
et. al, 2010). In other words, the Islamic banks adopt ‘sharia compliant finance’ 
systems, prohibiting acceptance of specific interest for loans, known as riba.

In the Second Conference in Cairo in May 1965, the Islamic Leaders, known 
as ulamas who gathered in the World Islamic Studies Consul has decided that there 
is no doubt on the prohibition of the riba (Antonio, 2001). The Concensus was 
also supported by the Fiqh Academy of the Muslim World League and Propagation 
Center, Counseling, Islamic Studies, and Fatwa, Kingdom of Saudi Arabia, and 
the Organization of the Islamic Conference (OIC) II in 1970, at Pakistan reached 
unanimously that the interest on a conventional bank contrary to Islamic law. In 
Indonesia, prohibitation of riba refers to fatwa Majelis Ulama Indonesia (MUI) No. 
1 tahun 2004that is supported by Majlis Tarjih dan Tajdid PP Muhammadiyah No. 
8 tahun 2006.

Prohibition of interest means forbids all Muslims use the services of 
conventional banks. Muslims would bear the sins if use a conventional bank services 
(Jalil dan Rahman, 2010). From this perspective, Islamic banks should be an option 
only for the Muslims not for the bank alternative that is often put forward as 
some academics, such as: Haron (1997); Memon (2007); dan Idris, et. al. (2011). 
Consider the law in the Islamic teachings, and the availability of Islamic banks, then 
the question arises: “Why the Muslim community is still not willing to stop using 
of conventional banking services, to further switch to Islamic banks?”

The consequence due to the fatwa issued by ulamas is the market for Islamic 
banking services has been growing rapidly over the past few years. Furthermore, 
this robust growth is expected to continue for the foreseeable future (Vayanos, 
Wackerbeck, Golder, and Haimari, 2008). However, it does not mean that the 
demand of the services of conventional banks is reduced. 

In Indonesia, the Islamic banking has also been growing rapidly. Based on 
the Indonesian Banking Statistics, number of accounts in Islamic banks increased 
significantly, from 1,964,438 accounts in 2006 to 13,430,904 accounts in June 
2014. In addition, Third Party Funds (TPF) has experienced a relatively high 



Hardius Usman: The Role of Religious Norm on Selecting the Islamic Bank  33

increasing, from 11,862 billion dollars in 2004 to 183,534 billion in 2013. Although 
Islamic banks in Indonesia have undergone a rapid growth in terms of the number 
of accounts and TPF, this phenomenon did not bring about a negative impact for 
conventional banks. In fact, deposits of conventional banks increased from 963,106 
billion dollars in 2004 to 3,663,968 billion dollars in 2013 (Bank Indonesia, 2014). 
By comparing the TPF of Islamic banks and conventional banks, it shows that the 
proportion of TPF of Islamic banks is still relatively small, which is about 5%. 
Eventhough the number of accounts in Islamic banks is increasing rapidly; it does 
not mean a conventional bank customers have switched to Islamic banks. Many 
banks customers in Indonesia hold multiple accounts. They open accounts in 
Islamic banks, howeeer, in the sam time they hae a conventional bank account. The 
condition raises the question: “Do the majority of Indonesian Muslims disbelieve 
the fatwa of MUI that the bank interest is forbidden (haram)?”

People generally perceive that two billion Muslims in the world adopted the 
same Islamic religious beliefs and practices (Azra, 2005). In fact, different opinions 
would not be avoided among the Muslim community across the world, because they 
hae differentiate in history, tradition, and culture. Since the law on the prohibition 
of interest is not explicitly written in the Koran, ulamas make consensus to address 
this critical issue that newly turns up in our modern life. At this point, sometimes 
there are different views among the ulamas about the meaning of ‘sharia compliant 
finance’ in the Islamic banking practices. This condition raises the question: “Do all 
the Indonesian Muslims believe that the bank interest is riba?”

Although ulamas have agreed on the prohibition of bank interest in the 
Second Conference in Cairo in May 1965, the literature reveals that some scholars 
still have different opinion. Islamic scholars from Modernist school of thought, 
such as: Fazlur Rahman, Muhammad Asad, Said al-Najjar, Sayyid Tantawi, consider 
that prohibitation of bank interest in the Koran are bank interest that is practiced 
before the Islamic era; there is a difference concept between riba and bank interest; 
and there is a difference between individual and institutional interest (Ahmad and 
Hassan, 2007). Rahman (1982) mentions that bank interest, especially in borrowing 
money are permitted in certain conditions.

Although the scholars mentioned about riba in conventional banks, but 
infact, there are still many Muslims use conventional banks. It can be assumed that 
indifferent opinions regarding the prohibition of interest give impact on of Muslims 
confidence in choosing a bank. One who believes that the interest is prohibited tend 
to choose Islamic banks. Nevertheless, others who believe that the bank interest is 
not (always) prohibited would choose conventional bank.

In the Theory of Reason Action, a normative is the subjective norms that refer 



Al-Iqtishad: Vol. VII No. 1, Januari 2015 34

to the perceived social pressures to perform or not to perform a certain behavior. 
One source of normative belief is common norms that are believed by the religious 
leaders’ referential (Fishbein and Ajzen, 1980). Consistent with Ajzen (1985), 
perceived religious norms are what one perceives as the beliefs of his or her religious 
leader. Hence, those who are influenced by religion may regard their spiritual leaders 
highly when contemplating the decision (Morgan, 2004). This is the reason why 
this study uses the variable religious norms to reflect difference belief in the fatwa of 
bank interest among Muslims.

Based on the explanation above, the aims of this study are to examine 
Muslims’ religious norms regarding to their belief  in the fatwa of the prohibition of 
bank interest, and to investigate the effect of religius norms on customers’ decision 
for using the Islamic banking services.

Literature Review

The main sources of the Islamic law are the Koran and Hadith. Every Muslim 
believes that the Koran is the word of Allah, revealed to the Prophet Muhammad. 
While Hadith describes the behavior of the Prophet Muhammad including about  
what he said, he did, he saw and he decided during his life (Gatrad and Sheikh, 
2001; Padela, 2007). It was  include the approval that he did not say. Thus, it was 
also related to all the statements that describe his physical attributes and characters 
(Kamali, 1991).  

Since the Prophet Muhammad’s death, Muslim leaders made Fatwa asa new 
source of the Islamic law. This is intended to deal with new issues or phenomena that 
arise with changes in time and culture (Hashim and Mizerski, 2010). At this point, 
it could appear a difference opinion among ulamas. Although Islam has provided 
clear directions between halal (permitted) and haram (forbidden) (Al-Qaradawi, 
1999), the debates on the various issues are unavoidable because many of the current 
issues are not explicitly commanded or forbidden. The fact that the Koran explicitly 
communicated in Arabic, leads to some divergences of the interpretation, especially 
when it is translated into non-Arabic languages. In addition, none of the institutions 
has the right to issue a universal Islamic law. Hence, it is possible to observe different 
interpretations of the Islamic law among various Islamic institutions.

Koran has explicitly forbids Muslims to consume alcohol and or gamble in 
surah Al-Baqarah [2]: 219; Al-Nisa [4]: 43; Al-Maidah [5]: 93. Therefore, the rules 
of Koran can be understood by Muslims explicitly, and then all ulamas and Muslims 
in the world agreed to these rules. However, the Koran and Hadith do not explicitly 
arrange about organ donation and transplantation (Al-Khader, Shaheen and Al-
Jondeby, 2003; El-Shahat, 1999, Rady and Ali, 2009). At this point appeared various 



Hardius Usman: The Role of Religious Norm on Selecting the Islamic Bank  35

effortsthat allows occurred differences view between ulamas. Although the Islamic 
Council (Senior Ulamas Commission) of Saudi Arabia stated that the Islamic rules 
allow the removal of organs from people who have died to save another human life 
(El-Shahat, 1999). However, between 1959 and 1998, there are at least 18 religious 
opinions that discuss the rules on organ donation and transpalansi (El-Shahat, 1999). 
In term of the donor’s organ, Aksoy (2001) explains that there are two schools of 
thought in Islamic cultures, schools of thought that allow organ donation, dan the 
other is not allowed, because the Koran does not explain explicitly.

Same as the example above, Koran also does not explicitly prohibit bank 
interest. Nevertheless, it explains only about riba. Do all Muslims agree that 
conventional banks have to be abandoned, without a single reason? Do all Muslims 
agree conventional banks may be used for not taking interest given?

All Muslims agree that the riba is prohibited that it is explicitly written in the 
Koran (Ar-rum [30]: 39; Al-Nisa [4]: 161; Al-Imran [3]: 130; dan Al-Baqarah [2]: 
275, 276, 278). However, when the riba is associated with the bank interest, debates 
over the concept of the riba in Koran appears. As it is mentioned before, some 
moderat scholars believe that the bank interest is permitted in some conditions. 
Rahman (1982), for instance, argued that they agreed  to take extra costs or bank 
interestin borrowing and lending of moneyin some conditions, such as; first, the 
loan does not aim to exploit the weak; second, the loan does not follow practices 
of the pre-Islamic era; third, the interest rates is reasonable; fourth, the loan is for 
investment not consumption; fifth, the interest is to compensate losses to creditors 
due to inflation ;  and sixth, the loan is for credit institutions.

This opinion certainly opposed by the traditional group, which has made a 
fatwa that bank interest is ribait also became the foundation for the establishment 
of Islamic banks. This condition indicates that there is difference belief about riba in 
Islam. This, of coure will give impact to the Muslim as a whole.

The social value in expenditure theory (Sheth, 1982) refers to the normative 
values that are held by social groups such as family, friends, or community. This 
definition is identical to the subjective norm in the Theory of Reason Action (Ajzen 
and Fishbein, 1980). In the theory of Reason Action, Ajzen and Fishbein (1980) 
take subjective norms as a part of behaviour factors and define it as an individual 
perceived social pressure to behave or not behave  (Ajzen and Fishbein, 1980). The 
subjective norms are determined by the normative belief. This is one source of 
common normative beliefs that are believed by the representative religious leaders 
(Fishbein and Ajzen, 1980). 

In social psychology, an important aspect of socio-cultural psychology is a 
social norm.  It is defined as a way of thinking, feeling and behaving that is shared with 



Al-Iqtishad: Vol. VII No. 1, Januari 2015 36

their community, so they appropiate it (Cialdini, 2009). There are many important 
social norms in the life of individuals that determined by the culture where s/he 
lives. In this context, culture is defined as a set of social norms, including religious 
and family values and other moral beliefs that are shared by people who live in an 
area (Matsumoto, 2001). Therefore, the cultures impact on the thoughts, feelings, 
and behavior through teaching, imitation, and other forms of social transmission 
(Mesoudi, 2009).

This will make people depend on the influential group and their social 
environment. On the other hand, the culture will influence social norms and religion 
. It is also affect a person’s social norms. Thus, religious leaders allow influencing 
someones’ social value, subjective norm, or social norms.

Consistent with Ajzen (1985), perceived religious norms are what one 
perceives as the beliefs of his or her religious leader. Hence, those who are influenced 
by religion may regard their spiritual leaders highly when contemplating the decision 
(Morgan, 2004).

Methods

The populations of study are Muslims who have bank(s) account. The 
respondents were conditioned as to be classified into three groups – the Islamic 
bank customer group, the conventional bank customer group, and the Islamic and 
conventional bank customer group. These groups can be viewed as an environmental 
factor treatment in experimental design (Agung, 2011).

The customers in each group are classified into two classes based on 
dichotomous variable of religious norms, that are traditional group who believes in 
the prohibition of the bank interest and contemporary group who do not believe 
in the prohibition of the bank interest. Thus, the natural experimental design is 
a 3 x 2 factorial design with three groups of bank customers, i.e. Islamic banks 
customers, conventional banks customers, and customers of both banks; and two 
further groups of each, i.e. traditional group and contemporary group. Natural 
experimental design is used because number of respondents who only has accounts 
in Islamic banks is relatively small. If sample selected randomly, the customers who 
use a pure Islamic banks will be very little. 

The sampling technique used in this study was a purposive quota. The first 
step is determining the number bank customers among the three groups of bank 
customers that are consists of 125 respondents in each group. The second step is 
selecting the sample with the following criteria: 1) Muslims, and 2) at least the age 
of 18 years. 



Hardius Usman: The Role of Religious Norm on Selecting the Islamic Bank  37

Data collection was carried out using a self-administered. Respondents filled 
out a questionnaire by themselves. However, the researcher guides them in filling 
out the questionnaires.

Table 1. Indicator for Construct of Religious Norms

Variable Description Statement Items*) Sources
Religious 
Norms

what one 
perceives as 
the beliefs 
of his or her 
religious leader. 
(Stephenson, et. 
al., 2008).

Banks interest should 1. 
not be prohibited if it 
does not aim to exploit 
the weak

Rahman 
(1982)

Banks interest should 2. 
not be prohibited if the 
interest rates is reason-
able

Rahman 
(1982)

Banks interest should 3. 
not be prohibited if it 
for investment not con-
sumption

Rahman 
(1982)

Banks interest should 4. 
not be prohibited if the 
interest is to compen-
sate losses to creditors 
due to inflation

Rahman 
(1982)

There are several statement items that used as Religious Norm measurements. 
Rahman (1982) argued that according to moderenist scholars, the extra costs or 
interest, especially in borrowing money is permitted in some conditions: first, 
the loan does not aim to exploit the weak; second, the interest rate is reasonable; 
third,  the loan is for investment not consumption;  and fourth, the interest is to 
compensate losses to creditors due to inflation

Therefore, the research context is banking as a credit institution. Rahman’s 
criteria no. 5, bank interests are allowed for credit institutions that will be excluded 
from the statement items. Thus, statement items will be used to measure variables 
Religious Norms that can be seen in Table 1. Items statement to establish a religious 
norm variables were measured using a Likert scale between 1 (strongly disagree) and 
6 (strongly agree).

Based on the average score of religious norms, customers are classified 
into two grouped: Traditional Customer (believe bank interest is forbidden), and 
Contemporary (believe bank interest are not always forbidden). The groups were 
done based on the average value of the score, in which: First, Traditional: smaller 



Al-Iqtishad: Vol. VII No. 1, Januari 2015 38

than the average score of all customers. Second, Contemporary: equal or greater 
than the average score of all customers.

The Analysis of Variance (ANOVA) and Pearson Chi-Square are used to 
test the hypotheses of religious norms influence on the selection of banks. .  Thus, 
researcher uses SPSS version 19 in data processing. The exploratory study also used 
in this research in order to complete the information about the phenomena related 
to Islamic banking. 

Discussion

After collecting the data, there were some incompleted questionnaires 
answered, so they should be dropped. Therefore, in order to reach the same number 
of bank customers, the last entry questionnaires were dropped to exceed the 
other groups of bank customers. Finally, the questionnaire used was 363 or 121 
questionnaires for each group of bank customers.

Data processing provided descriptive statistics score of the religious norms 
for the overall respondents as follows: mean score = 2.91; standard deviation = 1.43; 
the minimum value = 1; and the maximum value = 6. Therefore, the measurements 
using likert scale of 1 (strongly disagree) to 6 (strongly agree), it can be stated that 
the average score is relatively in the middle of the measurement scale. It means that 
a part of respondents have a lower score than the overall average who believe that 
the bank interest is forbidden.  And other group of respondents has an equal or 
higher score than the overall averagewho believe that the bank interest is not always 
forbidden.

Standard deviation value also strengthens the interpretation of the average 
score. The standard deviation indicated a religious norm scores varied among 
individuals, which also indicates a difference belief in bank customers towards the 
fatwa. The variation between individual average score of religious norms was also 
demonstrated by its range, with a minimum average score of 1 and maximum of 
6, which means there are customers who strongly disagree with the opinion of 
Moderenist schoolars. However, at the same time there are customers who strongly 
agree with the opinion. This result reveals that the Muslims do not always adopt a 
similar interpretation over the Islamic beliefs and practices.

Based on the descriptive statistics, it can be conluded that the data support the 
Hypothesis 1 that bank customers have different beliefs on the fatwa of prohibition 
of bank interest. Thus, although the MUI and the OIC has been agreed that bank 
interest is forbidden, but not all Muslims agree with the fatwa. This condition raises 
a question: “Why customers do not have the same beliefs about the fatwa?”



Hardius Usman: The Role of Religious Norm on Selecting the Islamic Bank  39

This is because the prohibition of interest is not explicitly written in the 
Koranand the difference opinions about the fatwa of the bank interest among 
ulamas. The  results support the statement (Al-Qaradawi, 1999) that although Islam 
has given clear directions between Halal and Haram, however, the debate about 
the issues is unavoidable because many of the issues now are not commanded or 
prohibited explicitly. So, it is miss perception if the people stated that two billion 
Muslims in the world adopt the same Islamic law in beliefs and religious practices 
(Azra, 2005).

If the religious norm is associated with bank customer group, the statistics 
show the lowest average score of the religious norms is customers of Islamic banks 
group (2.35), followed by the customers of both banks group (2.86) and customers 
of conventional bank group (3.52). This condition indicates that customers who use 
only Islamic bank, not all of them believe the fatwa or at least they approve one or 
more statements that are used to measure the variables of religious norms, which is 
actually contemporary thought as expressed from Rahman (1982).

Tests on the difference in parameter mean of religious norms among bank 
customers groups’ to answer the Hypothesis 2 using ANOVA. Based on the test of 
the statistical hypothesis, we have the F-statistic = 20,406 with p-value = 0.000, so it 
was decided to reject H0 at level of significant α = 0.05. It can be conclude that data 
support Hypothesis 2. Thus it can be stated that the parameter mean of religious 
norm for the customers of Islamic bank significantly different than the parameter 
mean of a conventional bank customers and/or the parameter mean of customers 
who hold two banks accounts. In other words, individuals who have the lower score 
of religious norm preferred to Islamic bank than conventional bank. 

Furthermore, to examine differences in the mean parameters of religious 
norm variables between customers of Islamic bank and conventional banks, and 
customers of Islamic bank and customers of both banks, Tukey test was used. Based 
on the testing of the statistical Hypothesis 1.1, we have the p-value = 0.000, so it 
was decided to reject H0 at level of significant α = 0.05. It can be conclude that the 
parameter mean of religious norm for the customers of Islamic bank are significantly 
lower than the parameter mean of a conventional bank customers. In other words, 
individuals who belief the fatwa of prohibition of bank interest tended to prefer 
Islamic bank than conventional bank. 

Meanwhile for statistical Hypothesis 1.2, it was obtained the p-value = 0.029. 
This means the parameter mean of religious norm Islamic bank customers are 
significantly lower than customers who have accounts at both banks. These finding 
again showed individuals who belief the fatwa of prohibition of bank interest tended 
to prefer Islamic bank.



Al-Iqtishad: Vol. VII No. 1, Januari 2015 40

In other words the result can be stated, the higher an individual’s belief that 
bank interest is forbidden, the individual will tend to prefer Islamic banks, otherwise 
the higher the individual’s belief that the interest is not always haram, the individual 
will tend to choose a conventional bank.

As previously explained that based on the average score of religious norms, the 
customer will be classified into two groups, namely: Traditional Customer Group 
(believe bank interest is forbidden), and Contemporary (believe bank interest is not 
always forbidden). 

The data, shows that the Islamic banks are dominated by traditional 
customers, conventional banks are dominated by contemporary customers, and the 
group of customers who hold accounts at both banks is relatively balanced between 
the traditional and the contemporary customers. The results of hypothesis testing 
using the Pearson Chi-square Test concludes that there is a significant association 
between religious norms and choosing banks (Asymp sig. = 0.000). The statistic 
test revealed that the traditional group has a tendency to prefer Islamic banks, and 
contemporary group tend to use conventional banks. The statistical test hyphotesis 
also supported hyphotesis 2 that is selection of Islamic banks depends on customers’ 
religious norms.

Nevertheless, the data showed that 32.23% customers of Islamic banks are 
customers who believe bank interest is not always forbidden. In contrast, 28.39% 
of conventional bank customers who believe banks interest is forbidden, still using a 
conventional bank. This condition indicates that the religious norm is not the only 
factors that influence the choice of the bank, but there are various other factors that 
could explain the phenomenon. 

This situation can be explained in terms of religiosity and non-religiosity. 
It is possible the individual who believes fatwa of prohibition of bank interest and 
still using a conventional bank, due to no or less religious individuals, so that the 
individual is still break his/her beliefs. However, the explanation in term rational 
reason can not be ignored, especially because the numbers of customers who believe 
bank interest is not always forbidden still use Islamic banks services.

Shopping Preference Theory (Sheth, 1981) states that selection to a store is 
a function of the individual motivations and the availability of shopping options. 
Consumers will choose an outlet because the outlet offers something that meets with 
his/her shopping motivation. Consumers are classified as the convenience shopper, 
who chose the store based on the saving of time, would prefer a store based on the 
location of the home or workplace.

Referring to the theory, it can be stated that beyond the belief toward fatwa of 



Hardius Usman: The Role of Religious Norm on Selecting the Islamic Bank  41

prohibition bank interest, in selecting banks, individual also consider their needs and 
desires and compared with what is provided by banks. Service, price, convenience, 
product, competent employees, are some examples of the bank attributes that have 
to be considered by bank’s customers in choosing the bank, as shown by previous 
studies (such as: Idris, et. al., 2011; Cloud and Bukhari, 2011; Hamid, et. al., 2011; 
and Khan, et. al., 2011).

From this perspective it can be stated that the presence of 32.23% customers 
of Islamic banks are the contemporary group, indicate that Islamic banks have various 
advantages in terms of non-religious compared conventional bank, which causes the 
customers choose Islamic banks. In contrast, 28.39% traditional customers prefer 
conventional bank indicate the needs and desires of the customers can not be met 
by Islamic banks, so that they continue to use conventional banks.

Exploratory study that accompanies this quantitative analysis indicates that 
many customers who believe the fatwa continue to use conventional banks, because 
the infrastructure of Islamic banks is not in accordance with their needs and desires. 
Therefore, these groups typically use a conventional bank to conduct transactions, 
and use Islamic banks to save or investment.

Based on the analysis, it was revealed there are three groups of bank customers 
based on religious norms, namely: first, bank customers who believe bank interest 
is forbidden so convinced using conventional banks is also forbidden; second, bank 
customers who believe bank interest is forbidden but tolerate to use of conventional 
banks with specific reasons; and third, bank customers who believe bank interest is 
not always forbidden and so are free to use any bank.

Based on the characteristics of Islamic banks, it can be stated that Islamic 
banks offer the systems which is embedded positive values. Therefore, the strategy 
that needs to be applied in Islamic banks, is no longer just rely on the fatwa, but 
rather highlight the system which is based on the positive values.

Positive values in business which is embedded in Islamic banks not only be 
interesting for the traditional group, because these values can benefit every human 
being. Thus there are opportunities that the values will also appeal to contemporary 
groups, customers that are no or less religious and even non-Muslim groups. Besides 
offering positive values, Islamic banks must prepare the infrastructure in order 
to meet all the needs and desires of customers. In an exploratory study revealed 
three main factors that need to be addressed, that is: human resources, informatics 
system and product. That is one of the key which will make Islamic banks be able 
to compete with conventional banks in serving the needs and desires of customers. 
Furthermore, Islamic banks can also offer different services compared to conventional 
bank customers by using the Islamic law as a compass in carry out the business.



Al-Iqtishad: Vol. VII No. 1, Januari 2015 42

Conclusion

The results showed that religious norms influenced the choice of the Islamic 
banks. However, the effect is not absolute because part of traditional customers 
does not choose Islamic banks. It shows in choosing a bank, some individuals do 
not just rely on his/her religious norm, but also on various other considerations. 
These results support the research conducted by Dusuki and Abdullah (2007) which 
revealed: in spite of the fact that submission to sharia has been known widely by the 
Muslim customers, some empirical studies find that religion is not the only reason 
to choose Islamic banks.

These findings also confirm the suggestion by Wilson (1995) that Islamic 
banks should not only consider their business just to fulfill religious obligations 
of the Muslims, but  more significantly as a business that is always needed to win 
customers at the same time retaining existing customers (Dusuki and Abdullah, 
2007). A similar statement was also expressed by Ahmad and Haron (2002) that 
Islamic banks should not rely solely on the religious factor as a strategy to attract more 
consumers, but should emphasize efficient service, and should look into situational 
factors that will determine their level of competitiveness in the future. Furthermore, 
Ashraf and Nurdianawati (2006) also mentions that the Islamic banking activities 
should no longer be regarded as an initiative to carry out a religious obligation, but 
significantly as the innovation needed to win the competition of customers.

Nevertheless, this study revealed that impossible for Islamic bank to regardless 
of religious sentiment, because basically the Islamic banks are built according to 
Islamic law. Obligations of religion and customers religious norm can still be relied 
upon as a strategy to get new customers or retain existing customers, especially for 
groups who believe the fatwa.

Prohibition of bank interest is fundamental difference between Islamic 
banks and conventional banks, but it is not the only difference. With regard to 
the prohibition of the bank interest, was born the concept of equity-partisipation 
(Hassan, et. al., 2008), profit and loss sharing system in all business conducted by 
Islamic banks (Haron, 1997; Idris, et. al., 2011). Islamic banks also have different 
characteristics from conventional banks in the correlation between the customers 
and the bank. In Islamic banks, the customer is a partner, not a debtor or borrower, 
as the practice of conventional banks (Marimuthu, et. al., 2010).

In banking practice, Islamic law also prohibits ‘ghahar’ or speculative trading 
and ‘maisir’ or gambling (Idris, et. al., 2011). Islamic banks are also prohibited 
from engaging in transactions (payment or acceptance) with business related to 
haram products, such as: alcohol, pork trade, or gambling activities (Manzoor, et. 



Hardius Usman: The Role of Religious Norm on Selecting the Islamic Bank  43

al., 2010). Furthermore Islamic banks are required to conduct business and trade 
activities based on the principles of justice and profit halal, pay zakat, prohibit 
monopolies, and work for social purposes (Haron, 1997).

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