NON-SHARIAH COMPLIANCE OF ISLAMIC BANKS AND CUSTOMERS COMMITMENT: TRUST AS MEDIATOR

Abstract

The purpose of this paper is to find out the impact of non-shariah compliance (NSC) of Islamic banks on the commitment of the customers and the role of trust as a mediator. The paper uses a quantitative approach by using surveys to collect data from 276 respondents. Smart PLS was used to run the analysis. Non-compliance of Islamic financial institutions with shari’ah principles significantly affects the commitment of the customers. Results of this showed that trust significantly impacts the commitment of the customers, study also indicated that trust mediates the relationship between the commitment and no-shari’ah compliance.