A review of Islamic banks financing in Malaysia

Mohd Daud, Mohd Ariff and Abd Sukor, Mohd Edil and Musa, Muhammad Adli and Abrahan, Amni Suhailah and Wan Jusoh, Wan Noor Hazlina (2023) A review of Islamic banks financing in Malaysia. Malaysian Journal of Consumer and Family Economics, 31. pp. 482-501. ISSN 1511 2802 E-ISSN 2948-4189

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Abstract

This study aims to investigate the financing behavior of Islamic banks in Malaysia by examining the concepts, types, purposes, and sectors of financing that Islamic banks provide. How Islamic banks behave, whether they are full-fledged Islamic banks or subsidiaries, is also examined. In addition, this study also xplores the ethicality of providing non-productive financing. This study utilizes data from Bank Negara Malaysia, along with annual reports of individual Islamic banks in Malaysia. The findings indicate that the financing behavior of Islamic banks is nearly identical to those of their conventional counterparts, in which debt-based financing instruments are widely employed, and that the allocation of financing is predominantly for activities that can be deemed as non-productive. This study contributes to the discourse on financial ethics concerning the financing behavior of Islamic banks, which is currently quite limited. It is anticipated that this research would potentially initiate more discussions on the ethicality of Islamic banks and improve current practices.

Item Type:	Article (Journal)
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Qur’an and Sunnah
Depositing User:	Mr Muhammad Adli Musa
Date Deposited:	03 Jan 2024 09:14
Last Modified:	21 Feb 2024 15:32
URI:	http://irep.iium.edu.my/id/eprint/109502

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