05 Jul ISLAMIC FINANCE INDUSTRY
Islamic finance industry in Malaysia has been in existences more than 30 years. The enactment of the Islamic Banking Act 1983 enabled the countrys first Islamic Bank to be established. Malaysias long track record of building a successful domestic Islamic financial industry of over 30 years gives the country a solid financial that adds to the richness, diversity and maturity of the financial system. (RosniaMasruki, 2010).
Before the advent of Islamic banks, financial market had been monopoly by conventional banks. However, in recent years Malaysian Islamic banks have to operate in an increasingly competitive environment. Alongside the conventional banking system, the Islamic banking system has steadily evolved to become a major player on the Malaysian financial landscape. The establishment of Bank Islam Malaysia Berhad (BIMB) in 1983 really marks the beginning of a new era in Islamic banking in Malaysia. The Islamic banking system received a further boost when a scheme where conventional banks can open windows for Islamic banking products that called Interest-free banking system. (M…
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