Understanding Islamic Banking & Its Financing Modes June 16, 2009

Since the Financial Master Plan launched in 2001, the Islamic banking industry had achieved about 10.5% of Malaysian total banking assets. The Islamic banking assets today stood at RM94.6b, with total financing at RM57.9b against total deposits of RM72.9b. The government had issued three licenses to foreign institutions to set up Islamic banking and had further allowed local banks to have Islamic banking subsidiaries. Now, there are numerous Islamic banks, which, had introduced numerous structured financing products that any businessman, whether Muslim or non-Muslim, can readily tap on them. Unlike the traditional financing products of the conventional banking that are mostly type-caste, there were not enough choices to meet the varied needs of a business; whether small or large. The conventional banking has been long established, which explained the irascible attitude of most bankers, but the Islamic banking aspired to achieve a 20% growth in total banking assets by 2010 will readily invent newer, as there already existed a wide range of products, facilities to wrest a market size from the conventional banking. The Islamic banking, nobody did better than it, has fine-tuned the Project Financing with its own Syariah-compliant financing products.

Official Website: http://www.gin-my.com/ws_20090617_fi_isfm.php