You are here

Financial Inclusion and Islamic Finance: A Survey of Islamic Financial Literacy Index

Journal Name:

Publication Year:

Abstract (2. Language): 
According to the Worldbank, the rate of financial exclusion due to religious reasons, which is 7% in the world, is 9.7% in the group of D-8 countries. Islamic banks or participation banks in Turkey appear to be the most important interface for increasing the tendency of individuals with religious sensitivity for financial inclusion by rendering services like deposit banks in accordance with religious principles for such persons. It's very important that we know the İslamic financial literacy level of individuals with religious sensitivity for the purpose of increasing their financial inclusion. However, a tool for measuring Islamic financial literacy level has not been generated yet. In this study, an Islamic financial literacy survey was generated and with results of this survey İslamic financial literacy index was studied for revealing the current status with the purpose of increasing the level of Islamic financial literacy. To that end, 3 separate sub-indexes were generated along with the general index of Islamic financial literacy. As a result of the study, general index of Islamic financial literacy was calculated as 58%.

JEL Codes:



Abdul Hamid, Abdul Halim, and Norizaton Azmin Mohd Nordin (2001),
“A Study on Islamic Banking Education and Strategy For The
Newmillenıum: Malaysian Experience”, International Journal of
Islamic Financial Services, Vol.2, No.4, pp.3-11.
Abdul Rahim, Siti Hafizah, Abdul Rashid, Rosemaliza and Ebu Bakar
Hamed (2016), “Islamic Financial Literacy and It’s Determinants
Among University Students: An Exploratory Factor Analysis”,
International Journal of Economics and Financial Issues, Vol.6,
No.S7, pp.32-35.
Abdullah, Mohamad Azmi and Alex Anderson (2015), “Islamic Financial
Literacy Among Bankers in Kuala Lumpur”, Journal of Emerging
Economies and Islamic Research, Vol.3, No.2, pp.1-16.
Adele, Atkinson and Flore-Anne Messy (2011), Assesing Financial Literacy
in 12 Countries An OECD Pilot Exercise, Netspar Discussion Paper,
OECD Financial Affairs Divison, Discussion Paper 01/2011-014.
Ahmad, Norafifah and Sudin Haron (2002), “Perceptions of Malaysian
Corporate Customers Towards Islamic Banking Products &
Services”, International Journal of Islamic Financial Services, Vol.3,
No.4, pp.13-29.
Antara, Purnomo M., Musa, Rosidah and Faridah Hassan (2016), “Bridging
Islamic Financial Literacy and Halal Literacy: The Way Forward in
Halal Ecosystem”, Procedia Economics and Finance, Vol.37, pp.196-
Beckmann, Elisabeth (2013), “Financial Literacy and Household Savings in
Romania”, Advancing Education in Quantitative Lİteracy, Vol.6,
No.2, pp.216-222.
Behrman, Jere R., Mitchell, Olivia S., Soo, Cindy K. and David Bravo (2012),
“How Financial Literacy Affects Household Wealth Accumulation”,
American Economic Review, Vol.102, No.3, pp.300-304.
Bley, Jorg and Kermit Kuehn (2004), “Conventional Versus Islamic Fınance:
Student Knowledge and Perception in The United Arab Emirates”,
International Journal of Islamic Financial Services, Vol.5, No.4, pp.1-
International Journal of Islamic Economics and Finance Studies 53
Er, Bünyamin, Mutlu, Mesut, ve Yunus E. Şahin (2015), Daha Bilgili, Daha
Doğru: İslami Finans Okuryazarlığı Üzerine Bir Araştırma,
International Congress on Islamic Economics and Finance, 21-23
October 2015, Sakarya/Turkey.
Gerrard, Philip, and Barton J. Cunningham (1997), “Islamic Banking: A
Study in Singapore”, International Journal of Bank Marketing,
Vol.15, No.6, pp.204-216.
Grohmann, Aantonia and Lukas Menkhoff (2015), Scholl, Parents And
Financial Literacy, Shape Future Fİnancial Behaviour. DIW
Economic Bulletin, 407-412.
Haron, Sudin, Ahmad, Norififah and Sandra L. Planisek (1994), “Bank
Patronage Factors of Muslim and Non-Muslim Customers”,
International Journal of Bank Marketing, Vol.12, No.1, pp.32-40.
Hidajat, Taofik and Muliawan Hamdani (2016), Measuring Islamic Financial
Literacy, The 2nd International Research Conference on Business
and Economics.
Competencies.pdf [06.09.2015]
pdf [19.07.2015]
Jorgensen, Bryce and Savla Jyoti, (2010), “Financial Literacy of Young Adults:
The Importance of Parental Socialization”, Family Relationship,
Vol.59, No.4, pp.465-478.
Kılıç, Yunus, Ata, Ali H. ve İbrahim H. Seyrek (2015), “Finansal
Okuryazarlık: Üniversite Öğrencilerine Yönelik Bir Araştırma”,
Muhasebe ve Finansman Dergisi, 2015 Nisan, ss.129-150.
Lusardi, Annamaria and Olivia S. Mitchell (2006), “Financial Literacy and
Planning: Implications for Retirement Wellbeing”, DNB Working
Paper, Working Paper No. 78/2005.
Metawa, Saad A. and Mohammed Almossawi (1998), “Banking Behavior of
Islamic Bank Customers: Perspectives and Implications”,
International Journal of Bank Marketing, Vol.16, No.7, pp.299-313.
Naser, Kamal, Jamal, Ahmad and Khalid Al-Katib (1999), “Islamic Banking:
A Study of Customer Satisfaction and Preferences in Jordan”,
International Journal of Bank Marketing, Vol.17, No.3, pp.135-151.
54 International Journal of Islamic Economics and Finance Studies
Mundell, Robert A. (1968), International Economics, New York: Macmillan.
Sardiana, Anna (2016), “The Impact of Literacy To Shariah Financial Service
Preferences”, Etikonomi, Vol.15, No.1, pp.43-62.
Tom, Tinsy R. and Nishanth Stephen (2015), “The Role of Cooperative
Banks in Financial Inclusion”, The IUP Journal of Bank Manageent,
Vol.14, No.3, pp.55-65.
Van Rooij, Maarten, Lusardi, Annamaria and Rob J. Alessie (2011),
“Financial Literacy, Retirement Planning”, and Household Wealth,
NBER Working Paper, No: 17339.
WorldBank (2007), Finance For All? Policies and Pitfalls ın Expanding
Access, World Bank Policy Research Report,
4099583-1194373512632/ FFA_book.pdf [22.07.2015]
WorldBank (2014), The Global Fındex Database, Measuring Financial
Inclusion Around the World,

Thank you for copying data from