Tuesday, September 04, 2007
Islamic banks in Indonesia
Although Indonesia has the largest number of Muslims of any country in the world, the Islamic finance industry is very underdeveloped, representing less than 5 percent of total deposits. The Wall Street Journal has a story about the advertising techniques of different Islamic banks with an interesting conclusion: most Islamic banks in Indonesia focus on their competitiveness with conventional financial institutions and market themselves to both Muslims and non-Muslims. Many Islamic banks have about a 50-50 split between Muslim and non-Muslim customers.