Contributing factors on the allocation of funds in the Islamic society: The case of financing tools for Islamic banks
ISSN: 1759-0833
Article publication date: 14 May 2019
Issue publication date: 21 October 2019
Abstract
Purpose
This paper aims to explain and present a theoretical framework for providing people with savings to finance two sectors: profitable investment and Gharz-al-Hassane. To do this first, assumptions and presumptions of the theory and framework are expressed, and then the effect of belief on this behavior is explained. Subsequently, this theoretical framework is evaluated in an empirical research.
Design/methodology/approach
The theoretical framework is explained by mathematical and logical methods. The experimental study is carried out using real data of 500 households from Zahedan (Center of Sistan and Baluchestan Province of Iran). Data were collected using questionnaire and were analyzed using statistical and econometric methods.
Findings
The result indicates that demands of Iranian people are not met within the framework of official markets. This disparity in supply and demand has led to the actions of people outside the formal framework, and so, banks and financial institutions cannot exploit the supply of people’s savings. On this basis, key factors determining people supply in a variety of markets are religious belief, age, income, education level, religious experience and so on, which should be considered in designing the Islamic banking and financial tools.
Originality/value
Today, economics and marketing have shown that an enterprise needs to meet customer demand to succeed. In the field of Islamic banking and finance, financial firms and banks should know this too. However, there are not many research studies in this area.
Keywords
Citation
Ezzati, M. (2019), "Contributing factors on the allocation of funds in the Islamic society: The case of financing tools for Islamic banks", Journal of Islamic Marketing, Vol. 10 No. 4, pp. 1074-1090. https://doi.org/10.1108/JIMA-02-2017-0017
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited