Essay On Bank Selection

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5 Bank selection criteria
Bank selection criteria mean the reasons on which basis customers will chose to do their banking transaction with any particular bank. The objective is to determine and establish the bank selection criteria of Islamic banking customers and conventional banking customers and a number of factors is include to determine this selection such as: Convenience, Lower risk of services fees and charges ,Recommendation from others, Quality and new products & services, Bank reputation & image, Diversification of risks, Religion belief or motives, Responsive attitudes of banking staffs, Interior comfort of bank, Good prospect of the banking system in the future, Better return and Welfare of the society are used to investigate customer’s criteria in the selection of Islamic banking. Bank selection criteria can vary in different countries this can be because of their country’s banking regulation or the importance of factors suggested above. Example for bank selection criteria are study carried by Anderson et al. (1976) found out that a convenient location is identified to be the most important factor in influencing the choice of customers in south western city in the US. But study carried out by Tan and Chua (1986) customers in Singapore did not select convenient location as their main selection criteria but they have rather selected factor such as recommendation from friends and family has more influenced customers in their decision in selecting a banking institution. Another study by Erol et al., (1989 and 1990) in bank selection criteria on both conventional and Islamic banks in Jordan, which they found that the three most important in the selection criteria were bank reputation & image, confidentiality of the bank a...

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...er’s needs. The last variable is bank selection criteria which consist of factors such as economic benefits, bank reputation, convenience and efficiency in using the system and risk diversification.
The hypotheses tested are: H1- Consumer awareness of Islamic banking system and products has significant impact on adoption of Islamic banking services; H2-Consumer knowledge of Islamic banking products and services has significant impact on adoption of Islamic banking services; H3- Consumer preferences between Islamic banking and conventional banking has significant impact on adoption of Islamic banking; H4-Bank selection criteria has significant impact on adoption of Islamic banking.

The sample was divided into two groups Muslim and non Muslim random sampling were use. Sample population was into different community Indian , Sino Mauritian, Muslim and

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