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The Potentiality Of Islamic Banking In Ethiopia: The Islamic Society's Perception In Jimma

Abstract: 

Ethiopia has a good share of Muslim population. However, the country practices only the conventional banking system and there is absence of Islamic banks to cater to the needs of sizeable Muslim population. This can also be viewed as one of the factors which hinder the overall financial sector development. Because Islamic society believes that banking with the conventional banks is against their religious faith a good number of potential customers are not banking with the banks available to date It is also observed by the researchers that even those who have deposit accounts in bank are getting the interest from the bank so as to distribute it to the poor people. A recent study entitled "Assessment of factors affecting Bank Preference among business organizations in Dessie town"(An unpublished Project Report) shows that 48% of those who don't have bank accounts say that they don't bank with commercial banks for religious reasons. It is with this background the researchers have undertaken this study with reference to Jimma town. Thus, this research aims at highlighting the concept of Islamic banking, analyzing the Islamic Society's perception on Islamic banking in Jimma, and to address the issues involved in the introduction of Islamic banking system in Ethiopia. As per the analysis made the researchers felt the need for an Islamic Bank for Ethiopian Muslims and have suggested several issues to different sections of the society, i.e. the government, the National Bank of Ethiopia and the Muslim community

Corporate Author: 
Getnet Alemu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Publisher: 
Ethiopian Economic Association (EEA)
ISBN/ISSN: 
978-99944-54-10-5
Primary Descriptors: 

Islamic Banking

Geographic Descriptors: 
Ethiopia, Jimma
Cataloge Date: 
02/27/2013
Broad Subject heading: 
Industry And Finance
Call Number: 
330.963 PRO 2009
Serial Key Title: 
Proceedings of the Sixth International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Volume: 
I
Publication date: 
2013-05-27 23:09:00
Forum or Discussion date: 
2013-02-27 15:02:19
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Book
Current frequency: 
Annualy