Islamic Education for A Sustained Growth of Participation Banking: Evidence from Imam Hatip Schools and Theology Faculties in Türkiye

Abstract

This study delves into the impact of Islamic education in Türkiye, through Imam Hatip schools from 2002 to 2022 and Theology Faculties 2006 to 2022, on the growth of participation banking from 2006 to 2022. It aims to discern if the principles instilled by Islamic education impact financial behaviors towards Islamic banking. A quantitative analysis was conducted, using multiple regression model alongside the proper diagnostics tools, to address the research question. The results indicate a persistent significant positive impact of Islamic education in both Imam Hatip schools and theology faculties in fostering participation in Islamic banking. Additionally, the study reveals a time-lagged effect of Islamic education on banking decisions, which shows that there is a gradual impact of religious education on financial behaviors. These findings contribute to understanding the role of Islamic education in shaping financial decisions in a secular, predominantly Muslim society. It offers insights into the socio-economic dynamics of modern Türkiye and have implications for policymakers and financial institutions. The results suggest that policymakers, in their aim towards achieving a sustained financial inclusion, should focus on the long-term and pay attention to the financial education of future generations.