Randall, DouglasDemirguc-Kunt, AsliKlapper, Leora2014-02-042014-02-042013-10https://hdl.handle.net/10986/16875In recent years, the Islamic finance industry has attracted the attention of policy makers and international donors as a possible channel through which to expand financial inclusion, particularly among Muslim adults. Yet cross-country, demand-side data on actual usage and preference gaps in financial services between Muslims and non-Muslims have been scarce. This paper uses novel data to explore the use of and demand for formal financial services among self-identified Muslim adults. In a sample of more than 65,000 adults from 64 economies (excluding countries where less than 1 percent or more than 99 percent of the sample self-identified as Muslim), the analysis finds that Muslims are significantly less likely than non-Muslims to own a formal account or save at a formal financial institution after controlling for other individual- and country-level characteristics. But the analysis finds no evidence that Muslims are less likely than non-Muslims to report formal or informal borrowing. Finally, in an extended survey of adults in five North African and Middle Eastern countries with relatively nascent Islamic finance industries, the study finds little use of Sharia-compliant banking products, although it does find evidence of a hypothetical preference for Sharia-compliant products among a plurality of respondents despite higher costs.en-USCC BY 3.0 IGOACCESS TO INFORMATIONACCOUNT OWNERSHIPACCOUNTINGACCOUNTING PRINCIPLESASSET FINANCINGASSET QUALITYBALANCE SHEETBANK ACCOUNTBANK ACCOUNTSBANK ASSETSBANK CUSTOMERSBANK LOANBANK MARKETINGBANKING ASSETSBANKING LAWSBANKING PRODUCTSBANKING SECTORBANKING SECTOR ASSETSBANKING SERVICEBANKING SERVICESBANKING SYSTEMSBANKSBARRIERBIASESBUSINESS CREDIT MARKETBUSINESS CYCLEBUSINESS TRANSACTIONSCAPITALIZATIONCENTRAL BANK SUPERVISIONCOLLEGE DEGREECOMMERCIAL BANKINGCOMMERCIAL BANKSCONSUMER LENDINGCONVENTIONAL BANKCONVENTIONAL BANK LOANCONVENTIONAL BANKINGCONVENTIONAL BANKSCONVENTIONAL FINANCECONVENTIONAL FINANCINGCORRUPTIONCOUNTRY FIXED EFFECTCOUNTRY FIXED EFFECTSCREDIT MARKETCREDIT MARKETSCREDIT PRODUCTCREDIT PRODUCTSCREDIT UNIONCREDITWORTHINESSCUSTOMER SATISFACTIONDEBIT CARDDEMOGRAPHICDEPOSITDEPOSITSDISCRIMINATIONDISCRIMINATION IN CREDITDUMMY VARIABLESECONOMIC ATTITUDESEMPLOYEREMPLOYMENTEMPLOYMENT STATUSENTREPRENEUREQUALITYEQUITY INVESTMENTEUROPEAN CENTRAL BANKFEDERAL RESERVEFIFTHFINANCE CORPORATIONFINANCE PRODUCTSFINANCIAL ASSETSFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL DIFFICULTIESFINANCIAL ILLITERACYFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL PRODUCTFINANCIAL PRODUCTSFINANCIAL SECTORFINANCIAL SERVICEFINANCIAL STABILITYFINANCIAL SUPPORTFINANCIAL SYSTEMSFINANCING ARRANGEMENTSFORMAL CREDITFORMAL FINANCIAL INSTITUTIONFORMAL FINANCIAL INSTITUTIONSFORMAL FINANCIAL SERVICESFORMAL LOANFORMAL SAVINGFORMAL SAVINGSGENDERGENDER GAPHARDSHIPHOUSEHOLD FINANCEHOUSEHOLDSINCOMEINCOME DISTRIBUTIONINCOME LEVELSINCOMESINFORMAL BORROWINGINHERITANCEINSTALLMENTINSTALLMENTSINTEREST PAYMENTINTEREST RATEINTERNATIONAL BANKINTERNATIONAL BUSINESSINTERNATIONAL FINANCEINVESTMENT ACCOUNTISLAMISLAMIC BANKISLAMIC BANK CUSTOMERSISLAMIC BANKINGISLAMIC BANKING PRODUCTSISLAMIC BANKSISLAMIC ECONOMICSISLAMIC FINANCEISLAMIC FINANCE INDUSTRIESISLAMIC FINANCE INDUSTRYISLAMIC FINANCIAL INDUSTRIESISLAMIC FINANCIAL INSTITUTIONSISLAMIC FINANCIAL PRODUCTSISLAMIC FINANCIAL SERVICESISLAMIC FINANCINGISLAMIC JURISPRUDENCEISLAMIC LAWISLAMIC LOANISLAMIC LOANSISLAMIC MICROFINANCEISLAMIC PRODUCTSLACK OF ACCESSLAWSLIFE EXPECTANCYLIMITED LIABILITYLIQUIDITYLOANLOSS SHARINGMARKET STRUCTUREMFISMICROFINANCEMICROFINANCE INSTITUTIONMICROFINANCE INSTITUTIONSMINORITY POPULATIONMOBILE PHONEMORTGAGEMORTGAGE LENDINGMUDARABAMUDARABA CONTRACTMURABAHAMUSHARAKAMUSLIMMUSLIM BANKMUSLIMSOUTREACHPATRONAGEPAYMENT OF INTERESTPOST OFFICEPRICE SENSITIVITYPRINCIPAL-AGENT PROBLEMSPRIVATE LENDERPRIVATE SECTOR DEVELOPMENTPROFIT SHARINGPUBLIC INSTITUTIONSQURANRECEIPTREGULATORSREGULATORY REGIMEREGULATORY REGIMESRELIGIOUS BELIEFSRELIGIOUS CONSTRAINTRELIGIOUS FACTORSREMITTANCESREPAYMENTREPAYMENT RATESREPUTATIONRESERVE BANKRESERVE BANK OF INDIARESERVESRETAIL BANKINGRIBASAVINGSSAVINGS ACCOUNTSSAVINGS BEHAVIORSAVINGS PRODUCTSAVINGS PRODUCTSSHARIASHARIA-COMPLIANT FINANCESHARIA-COMPLIANT SAVINGSSMALL BUSINESSSMALL BUSINESS CREDITSMALL BUSINESSESTRANSITION ECONOMIESURBAN AREAURBAN AREASVILLAGESWAGESWAQFWorld Bank10.1596/1813-9450-6642