Adapting Islamic Banks’ Carter Model: An Empirical Study In Riau’s Syariah Banks, Indonesia

Abstract

This paper is an effort to adapt “CARTER” (Compliance, Assurance, Reliability, Tangible, Empathy, and Responsiveness) model to measure customer service quality (CSQ) in Islamic Banks. According to Islamic law (Shari’ah/Syariah), the mode of finance should emphasize profit and loss sharing and prohibit fixed-returns. Islamic banks are engaged in trade finance investment, leasing projects, private banking, investment in real estate, and financial engineering. This paper examines the multidimensionality of CARTER model in Syariah Banks in Pekanbaru, Riau, Indonesia. The analysis uses method called factor analysis to find out whether all 32-CARTER items loaded positively or not (Othman and Owen’s study, 2001).