Professional Documents
Culture Documents
13 June 2006
Victoria University of Wellington
Presented by:
Bakarudin Ishak
Director
Islamic Banking and Takaful Department
Bank Negara Malaysia
ISLAMIC BANKING &
SEKTOR KEWANGAN ISLAM DI MALAYSIA
FINANCE IN MALAYSIA
MALAYSIA AT A GLANCE
• Population – 26.1 m
• Muslim – 15.4 m (59%)
• Strong GDP growth
• 1 quarter 2006 5.3%
st
• Low inflation
• Diversities of players
–Twelve full-fledged Islamic banking institutions
– 2 domestic Islamic banks
– 3 full-fledged foreign owned Islamic banks
– 7 Islamic banking subsidiaries
– 9 takaful operators
Milestones
1969 1983 1993 2003
Islamic subsidiary
Enhancement of
Product and market
knowledge and
development
expertise
Legal
Islamic Banking Act, 1983
Takaful Act, 1984
Government Investment Act, 1983
Legal Redress Framework
Shariah
Two Shariah governing committees
• National Shariah Advisory Council at
institution
Regulatory
Adopted international standards
Malaysia as International
Financial
Financial 2002 Islamic
Islamic Islamic standard-
international hub/ Sector
Labuan’s niche in SectorMaster
Master Financial
Financial setting body
Plan
Plan Services
ServicesBoard
Board
Islamic finance
Foreign Islamic FIs,
Malaysia 2003 Financial
First global Malaysiaglobal
global Financial 49% foreign equity
sovereign sukuk sukuk
sukuk liberalisation
liberalisation in Islamic banks and
takaful companies
Promotion of trade,
investment, Malaysia-IDB 2004 Financial
Financial Attract
Malaysia-IDB Market
takaful, financial MoU
MoU MarketIslamic
Islamic international
market & ICT Index
Index investors
Institutions Other
of higher training
learning providers
ISLAMICBANKING
ISLAMIC BANKING&&
SEKTOR KEWANGAN ISLAM DI MALAYSIA
FINANCE
FINANCE ININ MALAYSIA
MALAYSIA
ISLAMIC BANKING OPERATIONS
Non-mudharabah Depositors
deposits General
pool
Bank
Mudharabah
deposits
Specific account I Depositors
SHF or
Specific account II
ISLAMICBANKING
ISLAMIC BANKING&&
SEKTOR KEWANGAN ISLAM DI MALAYSIA
FINANCE
FINANCE ININ MALAYSIA
MALAYSIA
STYLIZED BALANCE SHEET OF AN IIFS
ASSETS LIABILITIES
Investment Profit
x% x%
Surplus/
100%
-x%
(Deficit)
100% -x%
Takaful
Operators
Less
Operating
Expenses
ISLAMIC
ISLAMIC BANKING
BANKING &&
SEKTOR KEWANGAN ISLAM DI MALAYSIA
FINANCE
FINANCE INMALAYSIA
IN MALAYSIA