Financial exclusion in Australia: can Islamic finance minimise the problem?

Sain, Mohamed Rosli Mohamed and Rahman, Mohammad Mafizur and Khanam, Rasheda (2016) Financial exclusion in Australia: can Islamic finance minimise the problem? Australasian Accounting Business and Finance Journal, 10 (3). pp. 89-104. ISSN 1834-2000

Abstract

The purpose of this study is to explore the nature and extent of financial exclusion in Australia focussing
particularly the Muslim community. Financial exclusion refers to a situation where people lack access to
affordable and appropriate financial services and products. In 2013, 16.9% of adults living in Australia were
severely or fully financially excluded; that is, almost one in six adults had no access to at least two basic
financial products. This paper is based on literature reviews, secondary data and the authors’ personal
experience in association with banking industry. The finding of this paper concludes that financial exclusion
remains a problem in Australia and there is still lack of information about financial exclusion based on
ethnicity or religious group in Australia. It also appears that very limited financial institutions in Australia are
offering Islamic financial products and services to cater for the needs of some 476,000 Muslims in Australia.
These Muslims communities may have been financially excluded due to their faith and religious belief,
because Islam prohibits Riba (usury and/or interest) which is widely practiced in conventional banking.
Islamic finance can mitigate the severity of the problem.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version, in accordance with the copyright policy of the publisher.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 10 Oct 2016 23:29
Last Modified: 11 Oct 2016 02:32
Uncontrolled Keywords: financial exclusion, Muslims, Australia
Fields of Research : 14 Economics > 1499 Other Economics > 149999 Economics not elsewhere classified
15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance
15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150203 Financial Institutions (incl. Banking)
14 Economics > 1402 Applied Economics > 140207 Financial Economics
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9199 Other Economic Framework > 919999 Economic Framework not elsewhere classified
B Economic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900101 Finance Services
URI: http://eprints.usq.edu.au/id/eprint/29776

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