Challenges or not, Islamic banking is set to continue its growth momentum this year. Underpinning this is the planned conversion of development financial institutions (DFIs) into full-fledged Islamic banks, a growing demand for Islamic finance, a strong sukuk market and anticipated mergers among Islamic banks.
Industry observers and players reckoned that these factors would spur the growth of the industry and hot up competition among the players, both existing and new. Statistics concur with this. According to the Ministry of Finance (MOF) 2012/2013 Economic Report, Islamic banking continued to expand in the first seven months of 2012, with total assets increasing 20.6% to RM469.5bil, representing 24.2% of the country’s banking system assets………………………………………..Full Article: Source