%0 Book
%A Georg Körnig
%D 2011
%C München, Germany
%I GRIN Verlag
%@ 9783640994489
%T Islamic Banking in Malaysia
%B A Potential Bottleneck for Economic Growth? 
%R 10.3239/9783640994489
%U https://www.hausarbeiten.de/document/177707
%X Malaysia is one of the largest and fastest growing markets for Islamic Finance and Banking worldwide. The current market-share of Islamic banking (IB) accounts for ca. ten 10% of the total banking sector, compared to about 0.1% in 1994.  The total share of bank assets held by Islamic banks worldwide amounts to 0.5%.  On the one hand this outstanding growth stems from the initiative of Malaysia’s central bank, Bank Negara Malaysia (BNM). BNM provided for an Islamic Inter-bank money market (IIMM) in January 1994.  On the other hand the opportunity to invest in Shari’a-compliant financial products is more and more embraced by the Muslim community all around the globe. This consensus is not argued about, but the influence of the Islamic Banking-specific properties on the financial system and the real economy is a field of scientific quarrel. The author tries to analyse the influence of Islamic Banking with regard to Malaysia and its dual financial system. This essay is structured as follows: In the beginning the author will outline a short history of Islamic Banking, followed by a comparison between conventional and Shari’a-compliant financial services. The question, if Islamic Banking could prove as a bottleneck for economic development is answered in the concluding section of this essay.
%K Islamic Banking, Malaysia, asset inflation, Islamic Finance
%G English