Table V.

Rotated component matrix for intention to adopt Islamic banking

Component
StatementsPerceived benefitAwareness
Islamic banking can work as a complementary system to conventional banking0.774 
I am aware that Islamic banking provides finances to micro and small and medium enterprises (SMEs)0.743 
Islamic banking will boost entrepreneurship in Uganda through provision of finances on the basis of profit-or-loss sharing0.712 
Islamic banks provide wide range of products and services and sufficient innovations to best serve the consumers all the time0.644 
Islamic banking can provide loans to micro businesses with no fixed interest rates0.638 
Islamic banks provide loans to those who do not have securities at disposal and better credit rating0.636 
I have heard about Islamic banking and am ready to accept it0.632 
Ugandan economy would benefit from inflow of funds from Arab investors0.626 
Islamic banking provides a solution to contemporary financial problems0.603 
Islamic banking products and services are acceptable among all Muslims and non-Muslims0.518 
Islamic banking is compliant to the Islamic law 0.811
Islamic banking products and services are different from those of conventional banking 0.768
Eigen values5.8711.866
Percentage of variance36.67619.458
Cumulative percentage36.67656.134
KMO 0.924
Extraction method: principal component analysis
Rotation method: varimax with Kaiser normalization
Source: Primary data

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