Research Article
Islamic Banking Customers Satisfaction in the Digital Banking: Evidence from Ethiopia: A SEM Approach
Habtamu Alebachew Legass*
,
Dawud Chane Mekonnen,
Jundi Mohammed Yusuf
Issue:
Volume 11, Issue 2, April 2025
Pages:
23-36
Received:
5 January 2025
Accepted:
3 February 2025
Published:
21 March 2025
Abstract: This study examines the impact of digitalization on customer satisfaction in Islamic banking in Ethiopia, focusing on central and eastern regions. A sample of 400 participants was surveyed, with 361 valid responses, using a five-point Likert scale. Data analysis, including explanatory factor analysis and regression, was conducted using SPSS 25 and Amos 23. The results indicate that compliance, reliability, service quality, and human skills significantly and positively influence customer satisfaction with digital Islamic banking. The study's limitations include its focus on a single country, which may limit generalizability to other contexts. Future research could explore cross-cultural differences, longitudinal studies, and qualitative methods to gain deeper insights into customer satisfaction in Islamic banking, especially about technology and global crises like cybersecurity concerns, pandemics, and economic instability. The study suggests that Ethiopian Islamic banks can enhance trust and satisfaction by prioritizing Sharia compliance, investing in staff training, transparent communication, and reliable technology. Customers should support institutions that align with their religious values, fostering long-term relationships. This research addresses a critical gap in understanding customer satisfaction with digital banking services, particularly in global crises such as cybersecurity issues, pandemics, and economic instability. It focuses on how customers of full-fledged Islamic banks perceive and evaluate digital services, the impact of cybersecurity on trust and satisfaction, and the influence of cultural and religious values. Moreover, to the researchers' best knowledge, it is the first study in the country to examine this topic in Islamic banks.
Abstract: This study examines the impact of digitalization on customer satisfaction in Islamic banking in Ethiopia, focusing on central and eastern regions. A sample of 400 participants was surveyed, with 361 valid responses, using a five-point Likert scale. Data analysis, including explanatory factor analysis and regression, was conducted using SPSS 25 and ...
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Research Article
Monetary Policy and Borrowing Constraint of Housing Market-a Comparative Research Between China and U.S.A.
Han Guimin*,
Mao Lili
Issue:
Volume 11, Issue 2, April 2025
Pages:
37-45
Received:
10 January 2025
Accepted:
24 March 2025
Published:
17 April 2025
DOI:
10.11648/j.ijfbr.20251102.12
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Abstract: Since 2006, U.S.A. has witnessed the ups and downs of its economy caused by the bubble of the housing market. Due to China’s unique law, only enterprises can use properties as collateral to borrow from banks, resulting in emphasis on borrowing constraint of the enterprises. When housing price can change value of the collateral and borrowing ability of the enterprises, monetary authority is motivated to stabilize the housing price. Studies show that if the Loan to Value ratio (LTV) of the enterprises’ real estate loans is too high, risk would rise due to borrowing constraints. When housing price becomes lower, wrong monetary policy may continue to lower housing prices, causing great damages to enterprises’ balance sheet in recession. We conduct simulation research of China by DSGE (Dynamic Stochastic General Equilibrium) model in comparison with that of U.S.A., finding that China’s economy is more stable than economy of U.S.A.. One important reason is that the entrepreneurs in China are more constrained than those of USA which results in less risk in the economy. With negative monetary shock, besides markup, other economic variables fall, especially debt and housing price. This means that borrowing constraint is also a financial accelerator. Monetary authority should take into account the borrowing constraint of loans backed by real estate.
Abstract: Since 2006, U.S.A. has witnessed the ups and downs of its economy caused by the bubble of the housing market. Due to China’s unique law, only enterprises can use properties as collateral to borrow from banks, resulting in emphasis on borrowing constraint of the enterprises. When housing price can change value of the collateral and borrowing ability...
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