A Survey on Islamic Finance Understanding and Awareness in Bangladesh Authors: Tanvir Hossain¹, Mahfuza Ahmad²

Abstract

One of the primary obstacles to the expansion of Islamic finance (IF) is the lack of adequate awareness and understanding of its principles. This study aimed to assess the knowledge and comprehension of Islamic finance among Bangladeshi individuals who actively use bank accounts for financial transactions. The scope included evaluating their understanding of Islamic financial management rules, familiarity with basic terminology, and awareness of the services, products, and benefits of Islamic finance, including Islamic microfinance. Using convenience sampling, data was collected from 328 respondents and analyzed with SPSS version 16. The findings revealed that respondents exhibited a relatively strong grasp of Islamic financial management rules and core Islamic finance concepts. However, despite residing in a predominantly Islamic country, their understanding of key Islamic finance terminologies was limited. Furthermore, they showed less familiarity with the services, products, and benefits of Islamic finance and Islamic microfinance. These findings carry significant implications for researchers, practitioners, and policymakers working to advance Islamic finance. The study provides both theoretical insights and practical recommendations for enhancing awareness and promoting the adoption of Islamic finance among the general population.