The Perceptions of Closing Islamic Windows within the Conventional Banks in Qatar and its influence on the Bank Performance

Abstract

This study explored the perceptions of customers and bankers in Qatar regarding the impact of closing Islamic windows on banks performance. Furthermore the study objective expands to analyze what changes happened to the Qatari banking system (both Islamic and conventional) after the decree, and whether the anticipated goals by QCB are compliant with the reality. The study conducted the qualitative and quantitative approaches. The analysis used the questionnaire to examine the impact of the closing decree on the banks‟ operations from the perspective of customers and bankers. This study also examined the operational and financial performance of conventional and Islamic banks before and after the closing of Islamic window. As a conclusion, the number of customers is the main factor that effects the bank performance followed by bank profit. The descriptive analysis from the bankers and customers perceptions shows that the Islamic banks provide the variety of benefits for customers in Qatar. The main three benefits of Islamic banking system are; (1) reduce the risks, (2) contribute in removing society inequality, and (3) improving general standard of living. In addition, results concluded that the size of Islamic banking system in Qatar between 20 -30% of the Qatari customers. The respondents mentioned that the purification of the Islamic financial transaction from any activities, which may not comply with SHAREEA, is the main reason for closing the Islamic Banking windows. This study help customers and bankers in Qatar to understand and comprehend more about the banking systems in Qatar, specifically how closing Islamic windows affect banks‟ performance.