Deposit Withdrawal Behavior of Islamic Banking Customers in Brunei Darussalam

This article is aimed at investigating the deposit withdrawal behavior of Islamic banking customers in Brunei Darussalam. More specifically, it explores the influence of individual characteristics upon the action of deposit withdrawal when the customers encounter three different situations: (i) non-shariah compliance issues upon products and services; (ii) uncompetitive return; and (iii) low service quality. Data collection is done using self-administered questionnaires with 180 completed questionnaires used for the analysis. The study uses a chi-squared independent test and binary logistic regression as its method of analysis. The findings show that deposit withdrawal is a real future threat for the Islamic banking industry in Brunei Darussalam and it happens when customers with certain characteristics and motivations encounter the three situations mentioned above.