Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30528
Factors Influence Depositors- Withdrawal Behavior in Islamic Banks: A Theory of Reasoned Action

Authors: Muhamad Abduh, Jarita Duasa, Mohd. Azmi Omar


Unlike its conventional counterpart, Islamic principles forbid Islamic banks to take any interest-related income and thus makes deposits from depositors as an important source of fund for its operational and financing. Consequently, the risk of deposit withdrawal by depositors is an important aspect that should be wellmanaged in Islamic banking. This paper aims to investigate factors that influence depositors- withdrawal behavior in Islamic banks, particularly in Malaysia, using the framework of theory of reasoned action. A total of 368 respondents from Klang valley are involved in the analysis. The paper finds that all the constructs variable i.e. normative beliefs, subjective norms, behavioral beliefs, and attitude towards behavior are perceived to be distinct by the respondents. In addition, the structural equation model is able to verify the structural relationships between subjective norms, attitude towards behavior and behavioral intention. Subjective norms gives more influence to depositors- decision on deposit withdrawal compared to attitude towards behavior.

Keywords: Islamic bank, structural equation model, theory of reasoned action, withdrawal behavior

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 3532


[1] M. Abduh and R. Ismal, "Depositors- withdrawal behavior in Indonesian Islamic banks (Periodical styleÔÇöAccepted for publication)", International Journal of Islamic and Middle Eastern Finance and Management, to be published.
[2] M. Abduh, "Islamic banking service quality and withdrawal risk: The Indonesian experience (Periodical styleÔÇöAccepted for publication)", International Journal of Excellence in Islamic Banking and Finance, to be published.
[3] Z. Abidin, M.K. Idris, and Faridahwati, "Predicting compliance intention on zakah on employment income in Malaysia: An application of reasoned action theory", Jurnal Pengurusan, vol. 28, pp. 85-102, 2009.
[4] H. Ahmed, A Microeconomic Model of an Islamic Bank. Research paper No. 59, Islamic Research and Training Institute, Islamic Development Bank, 2002.
[5] H. Ahmed, "Withdrawal risk in Islamic banks, market discipline and bank stability (Published Conference Proceeding style)", in Int. Conf. on Islamic Banking: Risk Management, Regulation and Supervision, Jakarta, 2003.
[6] I. Ajzen and M. Fishbein, Understanding attitudes and predicting social behavior. USA: Prentice-Hall, 1980.
[7] S. Al-Hajri, "The adoption of e-Banking: The case of Omani Banks", International Review of Business Research Papers, vol. 4, no. 5, pp. 120-128, 2008.
[8] H. Amin, A. Abdulrahman, and T. Ramayah, "What makes undergraduate students enroll into an elective course? The case of Islamic accounting", International Journal of Islamic and Middle Eastern Finance and Management, vol. 2, no. 4, pp. 289-304, 2009.
[9] H.H. Bauer, S.J. Barnes, T. Reichardt, and M.M. Neumann, "Driving consumer acceptance of mobile marketing: A theoretical framework and empirical study", Journal of Electronic Commerce Research, vol. 6, no. 3, pp. 181-192, 2005.
[10] B.M. Byrne, Structural equation modeling with AMOS: basic concepts, applications, and programming. Routledge, USA, 2001.
[11] F.D. Davis, R.P. Bagozzi, and P.R. Warshaw, "User acceptance of computer technology: A comparison of two theoretical models", Management Science, vol. 35, no. 8, pp. 982-1003, 1989.
[12] M.T. Fauziah, T. Ramayah, and Dzuljastri, "Factors influencing intention to use diminishing partnership home financing", International Journal of Islamic and Middle Eastern Finance and Management, vol. 1, no. 3, pp. 235-248, 2008.
[13] A.H.A. Gait, "Libyan attitudes towards Islamic methods of finance: An empirical analysis of retail consumers, business firms and banks (Unpublished work style)", Unpublished PhD Dissertation, Griffith University, Australia, 2009.
[14] J.F. Hair, W.C. Black, B.J. Babin, and R.E. Anderson, Multivariate Data Analysis. Prentice Hall, 2009.
[15] R.H. Hoyle, The SEM approach: basic concepts and fundamental issues, SAGE publication, USA, 1995.
[16] R. Ismal, "Depositors' withdrawal behavior in Islamic banking: case of Indonesia". Humanomics, vol. 27, no. 1, pp. 61 - 76, 2011.
[17] G.D. Israel, Determining sample size. Agricultural Education and Communication Department Series. Institute of Food and Agricultural Sciences, University of Florida, 1992.
[18] G. Kalton, Introduction to Survey Sampling, SAGE Publication, USA, 1983.
[19] D. Kaplan, Structural Equation Modeling: Foundations and Extensions, SAGE Publication, California, USA, 2000.
[20] S. Lada, G.H. Tanakinjal, and H. Amin, "Predicting intention to choose halal products using theory of reasoned action", International Journal of Islamic and Middle Eastern Finance and Management, vol. 2, no. 1, pp. 66-76, 2009.
[21] J.C. Nunnelly, Psychometric theory (2nd Ed). U.S.A: McGraw Hill, 1978.
[22] O.E. Omar, "The retailing of life insurance in Nigeria: An assessment of consumers- attitudes", Journal of Retail Marketing Management Research, vol. 1, no. 1, pp. 41-47, 2007.
[23] J.A. Ouellette and W. Wood "Habit and intention in everyday life: The multiple processes by which past behavior predicts future behavior", Psychological Bulletin, vol. 124, no. 1, pp.54-74, 1998.
[24] T. Raykov and G.A. Marcoulides, A first course in structural equation modeling, Routledge, USA, 2006.
[25] R. Sapingi, N. Ahmad, and M. Mohamad, "A study on zakah of employment income: Factors that influence academics- intention to pay zakah (Published Conference Proceeding style)", 2nd International Conference On Business and Economic Research, 2011.
[26] R.E. Schumacker and R.G. Lomax, A Beginners Guide to Structural Equation Modeling, RoutledgeÔÇöUSA, 2004.
[27] Y.Y. Shih and K. Fang, "The use of a decomposed theory of planned behavior to study internet banking in Taiwan", Internet Research, vol. 14, no. 3, pp. 213-223, 2004.
[28] T.A. Shimp and A. Kavas, "The theory of reasoned action applied to coupon usage", Journal of Consumer Research, Vol. 11, pp. 795-809, 1984.
[29] S. Taylor and P. Todd, "Understanding the information technology usage: A test of competing models", Information System Research, vol. 6, no. 2, pp. 144-176, 1995.
[30] B. Wheaton, "Assessment of fit in over identified models with latent variables", Sociological Methods and Research, vol. 16, pp. 118- 154, 1987.
[31] A.H.S. Zolait and A. Sulaiman, "Incorporating the innovation attributes introduced by Roger-s theory into theory of reasoned action: An examination of internet banking adoption in Yemen", Computer and Information Science, vol. 1, no. 1, pp. 36-51, 2008.
[32] H.F. Kaiser and J. Rice, "Little Jiffy Mark", Educational and Psychological Measurement, vol. 34, pp. 111-117, 1974.