Islamic banking in a dual-banking system

Exit Survey

Do you know whether the money you have deposited in a bank is protected, for example by deposit insurance?

Yes, I do.

No, I do not.

I am not sure.

Are you aware what deposit protection is?

Yes, I am.

No, I am not.

I am somewhat aware.

If you had a choice between (1) a deposit-taking financial institution that offers deposits with protection (such as deposit insurance), or (2) a deposit-taking financial institution that offers deposits without protection, which one would you prefer to place your deposits with?

I would choose (1) the institution with the protection

I would choose (2) the institution without the protection

I am not sure which institution I would choose

I would choose the institution with a stronger reputation

I would choose to keep my money at home

Other response not listed above

Bank A offers the following type of deposit account:
-Deposit insurance up to RM250k (i.e. a maximum of RM250k of your deposit will be protected and be returnable to you)
-The depositor does not share in the bank's investment risk, and in return receives only low percentage returns on his/her money
-Returns are fixed at 2% p.a. (for conventional accounts, this is guaranteed; for Islamic accounts, this is at the discretion of the bank)

Bank B offers the following type of deposit account:
-No deposit protection
-The depositor shares in the bank's investment risk, and in return will share in any profits or losses made by the bank's investment activities
-Returns are not fixed, and may be positive or negative (i.e. the depositor may either earn profit which is added to the principal amount deposited; or incur a loss, which is deducted from the principal amount deposited)

Which bank would you prefer to to place your money with?

Bank A

Bank B

Not sure

Bank A if it is a more profitable and well-managed bank

Bank B if it is a more profitable and well-managed bank

Other response not listed above

Imagine that deposit protection is no longer available at any bank. In order to enjoy returns on deposits, depositors are required to share in the bank's investment risks, which include mobilising deposits for loans (conventional banks) or financing (Islamic banks).

Given that the risk is higher in this case, what would you, as a depositor, choose to do?

I will still deposit my money in the bank.

I will no longer deposit my money in the bank and invest elsewhere.

I will keep my money at home.

I am not sure.

Other response not listed above

Are you familiar with Islamic banking?

Yes, I am.

No, I am not.

I am somewhat familiar with Islamic banking.

Other response not listed above