Culture and risk : perception and acceptability of risk of Riba in banking among teachers in Bahrain

Abstract

The purpose of this thesis was to provide insights into the consumer's perception of the risk of Riba (the Islamic prohibition of baking interest) and its influence on consumer's bank patronage. In Bahrain, the Conventional and the Interest-free banks operate side by side representing different philosophies of business and operation. Selecting a conventional bank requires Muslim customers to negotiate the risk of jeopardizing religious convictions, and selecting an Interest-free bank requires customers to adjust to possibilities of losing some of their convenience, time, services quality, and perhaps their money. Specifically, this study explored the interaction of risk perception (ethical and performance) with the banking patronage and a host of attitudinal and behavioural correlates in banking among the Bahraini customers. The study surveyed a random sample of customers from the population of Muslim teachers by means of Questionnaires. Risks of ethical, ideological and religious nature were identified These were new risks that extended the perceived risk research. Findings were reported about the public reaction to Riba as a threat and customers' concerns about it. The analysis also used attitudes, beliefs and world views, worrying, sin perception, religious orientation, Riba charactenstics, banking knowledge, social relations and contexts, as well as the risk handling activities to explore their influences on the perceived risks and banking patronage.