| dc.description.abstract | This paper examines the perceptions of Libyan banks
towards Islamic methods of finance and the likelihood of
adoption of these non conventional products and services. A
questionnaire is administered to 134 bank directors and
managers using phone interviews. The results indicate that
98.5% of banks have knowledge about Islamic banking in
general while specific Islamic finance products, including
Musharakah, Bai muajjall and Quard Hassan, are known by
79.6% of respondents. Moreover, Quard Hassan has been
practiced by 88.1% of respondents. However, most
respondents are relatively uninformed regarding most other
Islamic financing methods. Factor analysis is used to reduce
the large number of explanatory variables used to determine
attitudes towards Islamic finance to just three factors: namely,
growth in the demand for funds, effective management for
loans, and profitability. Discriminant analysis shows that
potential growth in demand for funds is the primary
motivation for the potential adoption of Islamic finance
among Libyan banks.
Keywords: Islamic finance; banks’ perceptions;
Libya; Islamic banking. | en_US |
