Issues and challenges facing Islamic financial institutions in Malaysia

Ishak, Mohd. Shuhaimi and Abdullah @ Chuah Hock Leng, Osman and Abdul Razak, Dzuljastri (2013) Issues and challenges facing Islamic financial institutions in Malaysia. Pertanika Journal of Social Science & Humanities, 21 (3). pp. 965-977. ISSN 0128-7702

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Abstract

The issue of riba or usury has long been a problem for Muslims. The establishment of Islamic financial institutions is a major step in addressing this predicament, as Islamic finance has been characterized as a body to remove exploitation and injustice. The concepts of Islamic finance were initially discussed in the mid 1940s; however, further details were only revealed and then practiced in the late 1960s. The Pilgrims Management and Fund Board of Malaysia (TPMFB) established in 1962 was the earliest Islamic financial institution set up to cater for the pilgrims in Malaysia. This was followed by Bank Islam Malaysia Berhad (BIMB) in 1983, which marked the beginning of commercial financial institutions offering Islamic products and services to consumers. This paper evaluates the issues, challenges and prospect of this emerging industry, and ends with suggestions and recommendations on how they can be addressed for Muslims to go forward in the field of financing.

Item Type:	Article (Journal)
Additional Information:	4676/25970
Uncontrolled Keywords:	Riba,Islamic Financial Institutions, Malaysia, Islamic finance and challenges
Subjects:	H Social Sciences > HG Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Finance Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Usul al-Din and Comparative Religion
Depositing User:	Aassociate Professor Osman Abdullah @ Chuah Hock Leng
Date Deposited:	03 Oct 2012 15:46
Last Modified:	10 Nov 2014 10:32
URI:	http://irep.iium.edu.my/id/eprint/25970

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