Perceptions of Shariah Scholars and Students towards Islamic Banking.

Abstract

Purpose of Study: The study is aimed at accessing the relationship of perceptions about the prevailing Islamic banking system in Pakistan with the three factors knowledge, awareness, and Shariah compliance. Our primary data is limited to the Shariah Scholars and Students of Rwp/Isb and those respondents not working for banks and not being paid by banks to avoid biased behavior. Since these people after further studies or experience get eligible to supervise the whole system of Islamic banks, the goal of the study is to know how they think about Islamic banking. Methodology: Cronbach’s Alpha Reliability Test, Regression Analysis, ANOVA Table, and Correlation between variables are conducted to judge the variation in perceptions due to the knowledge, awareness, and Shariah Compliance. Findings: The study’s result shows that awareness and Shariah Compliance are significant factors to change the Perceptions, while knowledge did not score significance level and all have positive associations with the Perceptions. Originality/Implications: Shariah Scholars and Students were considered to collect the data. It gives additional empirical evidence that how the dependent variable “Perception” fluctuates because of independent variables Knowledge, Awareness, and Shariah Compliance in the context of this new sample. Modern finance courses are needed to be conducted in Islamic institutes to produce Finance expert Shariah Scholars. This will increase the awareness level and will enhance Shariah compliance in the practices of Islamic banks.