Perspectives of SMEs on Islamic Banking Practices: A Study on the Assessment of Investment Financing and Business Savings

Abstract

This study investigates the factors affecting the preferences of SMEs in terms of investing their funds and savings in Islamic banking, which has a tendency to grow rapidly in Turkey.  From the point of conservative capital having entered the market and being actively evaluated, this study aims to offer information needed about SMEs for the Islamic banking industry. According to the findings of the analysis, the most important factor affecting the intention to use Islamic banking for SMEs is the perception of service quality. Recognition, transparency and reliability are other factors that influence the intention to use Islamic banking. Religious sensitivities, contrary to the common opinion, have no influence on the intention to use Islamic banking.