Perceptions of Malaysian corporate customers towards Islamic banking products and services

An Islamic banking system was established in Malaysia in 1983. To date, Islamic banking products are available at two full fledged Islamic banks, and at all commercial and merchant banks, in Malaysia. However, these products are still not popular with customers. At the end of 2000, total deposit at conventional banks was RM381 billion, while total deposit in Islamic system was RM31 billion. RM416 billion was loaned by conventional system, and RM21 billion was loaned by Islamic system. Because corporate customers are the key players in the economy, it is essential to determine how they choose financial services.