Challenges and opportunities of Islamic banking and financial institutions in Malaysia. South East Asia Journal of Contemporary Business, Economics and Law, 10 (1). pp. 1-30. ISSN 2289-1560 (2016)
Abstract
The purpose of this research paper is to investigate the opportunities of development and growth by identifying the main challenges to Islamic banking and financial institutions in Malaysia. Malaysia is the first country in the world to have a dual system of banking and finance which comprises of Islamic and conventional banks. When Bank Negara Malaysia’s Banking and Financial Institutions Act 1989 was amended in 1993, most conventional banks in Malaysia started to set-up full-fledged Islamic subsidiary. However, Islamic banking and financial institutions are facing some great challenges in the Malaysia because the conventional financial system is more beneficial. This research is a quantitative study using primary data and was disseminated among the banking authorities of Islamic banking and financial institutions. The questionnaire are based on fundamentals of Islamic banking, basic understanding of Muslim community, information system and the growth opportunities related to products and market development as well as difficulties and challenges in developing Islamic banking and financial institutions in the Malaysia. The research findings show that there are greater opportunities in Malaysia for development of Islamic financial banking because both the Muslim community and non-Muslim are longed to take Islamic financial products and they are willing to spend their lives according to their religion. The bank authorities need to improve the information system and Islamic banking institution is needed to work hard for survival and compete with conventional banking system in the sector of regulations and supervisions in Malaysia.
| Item Type: | Article |
|---|---|
| Keywords: | Islamic banking, Islamic finance, Opportunities, Regulatory challenges, Financial institutions |
| Taxonomy: | By Niche > Islamic Banking > Banks and Banking > Finance By Niche > Islamic Banking > Banks and Banking > Government Policy By Niche > Islamic Banking > Banks and Banking > Religious Aspects |
| Local Content Hub: | Niche > Islamic Banking |
| Depositing User: | Rosila Nordin |
| Date Deposited: | 05 Jun 2024 07:44 |
| Last Modified: | 05 Jun 2024 07:44 |
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