Hostname: page-component-cb9f654ff-5kfdg Total loading time: 0 Render date: 2025-09-02T05:08:19.209Z Has data issue: false hasContentIssue false
  • English
  • Français

Islamic Banking in Malaysia†

Published online by Cambridge University Press:  28 February 2019

Sherin Kunhibava
Get access Rights & Permissions [Opens in a new window]

Abstract

Islamic banking is the conduct of banking according to Shariah or Islamiclaw. Statistically Islamic banking has had phenomenal growth, according tothe Asian Banker Research Group, the world's 100 largest Islamic banks haveset an annual asset growth rate of 26.7% and the global Islamic financeindustry is experiencing an average growth of 15-20% annually. Recently thePrime Minister of Malaysia commented that Malaysia has been maintaining itsleadership in Islamic banking and finance for over three decades. As anInternational leader in Islamic banking, it would be interesting to explorethe development of Islamic banking in Malaysia. This will be the objectiveof this paper. This paper will focus on the historical development ofIslamic banking in Malaysia, from the creation of the Haj Pilgrim's FundBoard in the 1960s to the current Islamic banking scene of 17 local Islamicbanks and five International Islamic banks in operation. This paper willalso explore the unique regulatory and governance framework of Islamicbanking in Malaysia, by touching on the Islamic banking Act 1983, theCentral Bank of Malaysia Act 2009, the Banking and Financial InstitutionsAct 1989 and the Shariah Governance Framework introduced in 2011 by theCentral Bank of Malaysia. This paper will also briefly introduce how Islamicbanking works.

Information

Type
Articles
Information
International Journal of Legal Information , Volume 40 , Issue 1-2 , Spring-Summer 2012 , pp. 191 - 201
Copyright
Copyright © 2012 by the International Association of Law Libraries. 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

References

Ayub, Muhammad UNDERSTANDING ISLAMIC FINANCE. West Sussex: John Wiley & Sons, Ltd., 2007.Google Scholar
BNM. “Islamic Banking Industry.” http://www.bnm.gov.my/microsites/financial/-0204_ib_takaful.htm#ib.Google Scholar
BNM. “Shariah Governance Framework.” (2011), http://www.bnm.gov.my/guidelines-/05_shariah/02_Shariah_Governance_Framework_20101026.pdf.Google Scholar
Co., Mckinsey &. Capturing the Trillion Dollar Opportunity, The World Islamic Banking Competitiveness Report 2007-08, 2008.Google Scholar
Grewel, B.K.“Islamic Capital Market Growth and Trends.” Islamic Finance News (2007), http://www.islamicfinancenews.com/guide07pdf/icmislamic%20capital.pdf.Google Scholar
Islamic, RHB. “Wadiah Basic Savings Account - I.” http://www.rhb.com.my/islamic-_banking/deposit/wbsa-i.html.Google Scholar
ISRA. Islamic Financial System Principles and Operation. Kuala Lumpur: ISRA, 2011.Google Scholar
“Klifd: A Significant Boost to Nation's Leadership in Islamic Finance.” Bernama, April 1 2011.Google Scholar
MIFC. “List of Islamic Banks.” http://www.mifc.com/index.php?ch=menu_know_ibt-_ib&pg=menu_know_ibt_ib_list.Google Scholar
Rosly, S.A. Critical Issues on Islamic Banking and Financial Markets. Kuala Lumpur: Dinamas, 2005.Google Scholar
Thani, Nik Norzul Abdullah, Mohamed Ridza, and Hassan, Megat Hiziani Law and Practice of Islamic Banking and Finance. 2nd ed. Petaling Jaya: Sweet & Maxwell Asia, 2010.Google Scholar
Usmani, Muhammad Taqi An Introduction to Islamic Finance. Netherlands: Kluwer Law International, 2002.Google Scholar
Yackop, Nor Mohammed “Developing an Islamic Banking System: The Malaysian Model.” In From Moneylenders to Bankers: Evolution of Islamic Banking in Relation to Judeo Christian and Oriental Banking Traditions International Islamic Banking Conference. PRATO, Italy, 2003.Google Scholar