Section III: Opportunities nearby IFB system in Ethiopia
Desk four.2.1 IFB used for mainstreaming unbanked neighborhood
IFB used for mainstreaming unbanked neighborhood (N=79) Frequency P.c Imply SD
Strongly disagree 7 eight.9 three.48 1.309
Disagree 14 17.7
Impartial 14 17.7
Agree 22 27.eight
Strongly agree 22 27.eight
TOTAL 79 100.zero
Supply: Personal Survey, 2019
IFB used for mainstreaming unbanked neighborhood
Above desk four.2.1 reveals assertion to grasp the place of respondents on the assertion whether or not IFB has the potentials for mainstreaming the big variety of unbanked Muslim neighborhood in Ethiopia. The outcomes revealed that 9% (N=79) and 18% of the respondents strongly disagree and disagreed respectively with the assertion.
On the opposite facet 55% respondents agreed & appreciable variety of respondents (18%) didn’t present their place on the difficulty. The common of the pattern which is three.48(SD=1.309) this means most of respondents agreed on this assertion. In keeping with Nuruddeen Abba Abdullahi(2016) the Islamic banking has the potentials for mainstreaming the big variety of unbanked Muslim neighborhood in Nigeria as they could be interested in one of these specialised banking system and get bankable.
Even non-Muslims could also be attracted by the enterprise nature of the Islamic banking actions which give funding sources moderately than fastened curiosity services to clients. Islamic banking is curiosity (riba) free and commerce oriented banking system, and it’s based mostly on revenue and loss sharing mechanism. The Islamic banking system additionally has the potential to supply better entry of monetary companies to all segments of society. Accordingly, Islamic banks would meet the differential calls for of low revenue communities and supply Help to entrepreneurial actions. Due to this fact, it could promote better monetary inclusion in line with the present aim of the Central Financial institution of Nigeria. Extra considerably, mainstreaming the unbanked or the unnerved communities into the financial mainstream via the monetary intermediation course of would contribute in the direction of poverty alleviation, job creation and extra equitable financial development
Desk four.2.2 Excessive demand in companies of IFB
excessive demand in companies of IFB (N=79) Frequency P.c
Imply
SD
Strongly disagree 9 11.four three.27 1.251
Disagree 12 15.2
Impartial 21 26.6
Agree 22 27.eight
Strongly agree 15 19.zero
TOTAL 79 100.zero
Supply: Personal Survey, 2019
There’s a excessive demand in companies of IFB
Above desk four.2.2 present the respondents had been additionally requested they supposed a excessive demand in companies of IFB by the Ethiopian society. The outcomes uncovered that at the least 46% (N=79) agree with the assertion. Nonetheless, a substantial proportion of 27% didn’t give their opinion on the difficulty. Taking into account the variety of respondents perceptions, there was a possible demand for the IFB companies in Ethiopia due to curiosity exclusion in their faith.
Desk four.2.three Constructive results from international monetary traits on IFB
Constructive results from international monetary traits on IFB Frequency P.c Imply SD
Strongly disagree 13 16.5 three.27 1.421
Disagree 12 15.2
Impartial 15 19.zero
Agree 19 24.1
Strongly agree 20 25.three
TOTAL 79 100.zero
Supply: Personal Survey, 2019
Supportive International monetary traits on IFB
A declaration to know the state of affairs of respondents on the desk four.2.three assertion whether or not optimistic international monetary traits would have an effect on IFB in Ethiopia. These International traits embody for instance technological developments, financial development in Ethiopia and in IFB enlargement. The outcomes uncovered that 16.5% (N=79) and 15% of the respondents strongly disagree and disagreed respectively with the assertion. On the opposite facet a considerable variety of respondents (59%) are agree & 19% didn’t present their place on the difficulty. The common of the pattern which is three.27(SD=1.421) additionally reveals that the development of the pattern is geared in the direction of disagreeing with the assertion.
Desk four.2.four IFB results in enterprise enlargement and funding
IFB result in enterprise development and funding (N=79) Frequency P.c Imply SD
Strongly disagree 10 12.7 three.34 1.376
Disagree 14 17.7
Impartial 15 19.zero
Agree 19 24.1
Strongly agree 21 26.6
TOTAL 79 100.zero
Supply: Personal Survey, 2019
IFB results in enterprise enlargement and funding
Above Desk four.2.four reveals respondents thought that IFB favored the enlargement of enterprise and investments, the vast majority of respondents 24% and 27% agreed and strongly agreed respectively. The common of the pattern which stood at three.34 (SD=1.376) itself reveals that there’s a tendency to agreeing with the assertion by respondents we conclude that IFB has alternative to develop enterprise and investments the Ethiopian unbanked neighborhood.
Desk four.2.5 Curiosity free banking system is versatile and simple to undertake
IFB is versatile and simple to undertake (N=79) Frequency P.c Imply SD
Strongly disagree 10 12.7 2.67 1.152
Disagree 28 35.four
Impartial 30 38.zero
Agree 5 6.three
Strongly agree 6 7.6
TOTAL 79 100.zero
Supply: Personal Survey, 2019
Curiosity free banking system is versatile and unproblematic to undertake
Above desk four.2.three on the views of respondents regarding the implementation of IFB system in the industrial banks of Ethiopia. It was point out that 6.three% (N=79) and seven% agreed, strongly agree with the assertion that IFB was versatile and simple to undertake, regardless of 38% holding their opinions. The common of two.67 (SD=1.152) additionally reveals an inclination of the pattern in the direction of impartial with the assertion.
Desk four.2.6 IFB just isn’t for Muslims solely
IFB just isn’t for Muslims solely (N=79) Frequency P.c Imply SD
Strongly disagree 24 30.four 2.76 1.478
Disagree 12 15.2
Impartial 15 19.zero
Agree 15 19.zero
Strongly agree 13 16.5
TOTAL 79 100.zero
Supply: Personal Survey, 2019
Curiosity free scheme just isn’t for Muslims solely
On the above desk four.2.6 to restrict the views of the respondents on whether or not they thought that the curiosity free banking system was not for Muslims solely. It was indicated that 46% (N=79) agree not just for Muslims and 30% disagree IFB system is just for Muslims. This means that greater than 46% of the respondents disagreed with the assertion. Moreover, the imply of the pattern additionally indicated an inclination to not agreeing with the assertion that IFB was for Muslims solely. As a matter of truth, this provides to the potentials of IFB as this service can profit each Muslims and non-Muslim clients particularly in a rustic like Ethiopia the place Muslims and Christians stay collectively in peace and concord we concluded that IFB system not just for Muslims.