Reconciliation or polarization in
Islamic bank preference?
Socio-political, socio-economic
and demographic aspects
Eskisehir case in Turkey
Etem Hakan Ergec
Istanbul Medeniyet Universty, Eskisehir, Turkey
Bengül Gülümser Kaytanci
Anadolu Universitiy, Eskisehir, Turkey, and
Metin Toprak
Istanbul University and International University of Sarajevo, Istanbul, Turkey
Abstract
Purpose – The reasons for Islamic bank preferences have been extensively covered in the literature
where religion has been depicted as a strong factor. In the limited number of accounts on this subject in
Turkey, it was found that religiosity is a major factor in the selection of Islamic banks.
Design/methodology/approach – This study evaluates the fndings of a major feld work
performed in the period between March and May 2011 in Eskisehir with the participation of Islamic
bank customers. In the study, a sample of 500 respondents was used and a semi-structured survey was
conducted.
Findings – According to the fndings, religiosity is not the most signifcant and leading factor in
Islamic bank preference; instead, it was found as the fourth most important factor. The study fnds that
recommendation by friends and relatives is the most signifcant factor for the people in preferring
Islamic banks. The nationalist-conservative people make stronger reference to the religiosity as a factor
than the secular-modernist and leftist-social democrat people do. Socioeconomic status is not found as
a signifcant factor in the Islamic bank preference. People in advanced age, men, people with lower
income and businessmen/artisan rely on the religiosity in Islamic bank preference as a factor stronger
than people from other backgrounds.
Practical implications – In conclusion, it could be said that there is a strong relation of substitution
between Islamic banks and conventional banks in Turkey and that the Islamic banks play signifcant
role in inclusion of the people staying out of the banking system due to religious concerns and
considerations in the fnancial system.
Originality/value – It is very comprehensive, both politically and economically, to handle the issue of
Islamic banking.
Keywords Interest free banking, Islamic fnance, Turkish Islamic economy
Paper type Research paper
Introduction
More than one-fourth of the world population is Muslim, and Islamic rules are becoming
more infuential in economic life. At the present time, many conventional banks offer
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Islamic bank
preference
67
Received 10 July 2013
Revised 7 May 2015
9 May 2015
Accepted 26 October 2015
International Journal of Islamic
and Middle Eastern Finance and
Management
Vol. 9 No. 1, 2016
pp. 67-86
© Emerald Group Publishing Limited
1753-8394
DOI 10.1108/IMEFM-07-2013-0082
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