Exploring Credibility of Indonesian Islamic Bank: An Exploratory Factor Analysis (EFA) Approach

Abstract

This study attempts to explore the antecedents of credibility of full-fledged Islamic banks in Indonesia. The respondents who have a bank account in full-fledged Islamic bank for at least one year. The data were collected from respondent using the structured questionnaires. A total of 250 questionnaires were distributed to the customers of major Islamic banks that in the Aceh Province, Indonesia. The study documented that credibility refers to a multidimensional construct composed of three factors: reliability, concern and knowledge. A scale of overall credibility in Islamic Bank was obtained, comprising three dimensions with 21 indicators that were significant for their measurements. The factor of concern refers to the key of establishing and maintaining long-term relationships between companies and customers. In addition, knowledge can increase responsiveness to customers, improve work efficiency and ability to innovate. However concern and knowledge are the new factors in the theory of credibility that can be applied in the Islamic Banks.