Title: Do mosques use Islamic bank services? Evidence from Indonesia

Authors: Khansa Fairuz; Adam Adhe Nugraha; Farhan Medio Yudantyo; Novat Pugo Sambodo; Evi Aninatin Ni'matul Choiriyah; Umminita Wahyu Pertiwi; Riswanti Budi Sekaringsih

Addresses: Pre Employee Program, Indonesia Deposit Insurance Corporation, Jakarta, 12190, Indonesia ' Non-Bank Financial Industry Special Supervision Department, Indonesia's Financial Service Authority, Jakarta, 12710, Indonesia ' Centre for Research in Islamic Economics and Business, Faculty of Economics and Business, Universitas Gadjah Mada, Yogyakarta, 55281, Indonesia ' Faculty of Economics and Business, Department of Economics, Universitas Gadjah Mada, Yogyakarta, 55281, Indonesia ' Pre Employee Program, Indonesia's Financial Service Authority, Jakarta, 12710, Indonesia ' Faculty of Islamic Studies, Department of Islamic Economics, Islamic University of Indonesia, Yogyakarta, 55584, Indonesia ' Faculty of Islamic Economics and Business, Department of Sharia Economics, UIN Sunan Kalijaga, Yogyakarta, 55281, Indonesia

Abstract: Previous research has proven that the use of formal financial services can support the performance of mosque financial management. Nevertheless, there is no study explaining the factors that influence Islamic financial inclusion in Indonesian mosques to date. Using data from The Indonesian Mosque Survey 2020, this study examined the determinants of mosques bank account ownership in Indonesian mosques. Our research revealed that only a few mosques have adapted financial services. We then investigated what factors influenced Islamic bank account ownership in Indonesian mosques by using ordinary least square (OLS) and probit methods. We found that the married and higher educated mosque leaders positively correlated to Islamic bank account ownership. At the mosque level, the mosques were located in Java and owned a general planning document, a large amount of donation, large building size and high number of congregants had a higher probability of having an Islamic bank account.

Keywords: bank account; Indonesia; Islamic banking; mosque; leader; OLS; ordinary least square; probit.

DOI: 10.1504/IJMEF.2022.126892

International Journal of Monetary Economics and Finance, 2022 Vol.15 No.3, pp.232 - 252

Received: 02 Mar 2021
Accepted: 03 Jan 2022
Published online: 11 Nov 2022 *

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