31.03.2011 - Overview of Islamic banking in Malaysia
Since the 1970s, Islamic banking has emerged as a new reality in theinternational financial scene. Its philosophies and principles are however, notnew, having been outlined in the Holy Qur'an and the Sunnah of ProphetMuhammad (p.b.u.h.) more than 1,400 years ago. The emergence of Islamic banking is often related to the revival of Islam and the desire of Muslims to live allaspects of their live in accordance with the teachings of Islam.In Malaysia, separate Islamic legislation and banking regulations exist side-by-side with those for the conventional banking system. The legal basis for theestablishment of Islamic banks was the Islamic Banking Act (IBA) which cameinto effect on 7 April 1983. The IBA provides BNM with powers to supervise andregulate Islamic banks, similar to the case of other licensed banks.............................................Full Article: Source
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