Can Islamic banking revive Somalia’s ailing economy?

  • Warsame M
  • Abdalla Y
  • Lasyoud A
N/ACitations
Citations of this article
12Readers
Mendeley users who have this article in their library.
Get full text

Abstract

The study aims to evaluate the Islamic banking prospects in Somalia and the role it can play in reviving the country’s ailing economy. Somalis were recruited through purposive sampling techniques. Structural equation modeling (SEM) has been adopted to analyze the data collected using SmartPLS. The findings have shown a negative and insignificant impact of absence of a functioning financial system, lack of funding and expertise, and effect of bank absence on businesses. Financial and political infrastructure significantly affected the Islamic banking system of Somalia. Law and order measures show a significant impact on suitability of banking and financial systems of Somalia. Sharia compliant finance shows a positive but insignificant impact on Islamic banking in Somalia. Standalone new banks in Somalia have fewer chances of success due to the absence of personnel with the necessary skills and qualifications.

Cite

CITATION STYLE

APA

Warsame, M. H., Abdalla, Y. A., & Lasyoud, A. A. (2021). Can Islamic banking revive Somalia’s ailing economy? Accounting, 7(7), 1709–1716. https://doi.org/10.5267/j.ac.2021.4.027

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free