Journal Name:
- International Journal of Islamic Economics and Finance Studies
Author Name |
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Abstract (2. Language):
This paper aims to explore the demand conditions for Islamic
banking in Libya by referring to awareness, motivations, and
expectations of the participants in relation to Islamic banking. In
fulfilling the aims of this study, primary data were gathered
through questionnaire (quantitative) method in the early months
of 2012. The analysis of questionnaire data indicates that majority
of the respondents had high hopes from Islamic finance as there is
an overwhelming potential demand expressed by the respondents.
There is a support for a banking reform in Libya by incorporating
Islamic banking into the system. In addition, the results suggest
that the Libyan people believe that promoting Islamic banking
system will favour the process of economic development and social
justice and in effect will alleviate poverty in the country. It is
important to note that particularly participants’ socio-economic
development related expectations from Islamic banking and
finance are rather high. Therefore, study also found positive and
strong support for non-banking Islamic financial institutions
among the participants in Libya. The findings also depict that
participants’ understanding and knowledge of Islamic finance
principles and instruments is rather limited which requires proper
training. As regards to the supply conditions, participants at the
interviews particularly highlighted lack of proper regulative and
legal environment and also of the shortcomings in human resources
to develop Islamic banking and finance system.
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