Islamic Banking Revolution in Malaysia: A Review

Husseini, Saleh Ali; Fam, Soo-Fen; Ahmat, Norun Najjah; Azmi, Fadhlur Rahim; Prastyo, Dedy Dwi; Yanto, Heri

doi:10.18510/hssr.2019.7434

Cited by 6 publications

(3 citation statements)

References 28 publications

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“…In addition, the Cash Control Act of 1953, Takaful Law, and Payment System Act of 2003 ensure that the activities of Islamic finance in Malaysia meet Shariah compliance (Husseini et al, 2019). The contribution of the Malaysian government to Islamic banking has made Malaysia one of the leading countries in Islamic finance (Thomson Reuters, 2018).…”

Section: Introductionmentioning

confidence: 99%

Interplay of Institutional Quality, Efficiency, and Stability in The Islamic Banking Sector of Malaysia

MORTADZA,

PURWANINGSIH,

TRINUGROHO

et al. 2024

IJEM

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This study examines the interplay among institutional quality, efficiency, and financial stability in the Malaysian Islamic banking sector with a special emphasis on the interaction between efficiency and institutional quality. The sample comprises 16 Islamic banks from 2012 to 2020. The indicators for financial stability are Z-score based on return on assets (ZROA) and non-performing loans (NPLs). The system generalized method of moments (GMM) is employed to overcome the potential endogeneity issue in our regression. The findings show that institutional quality (i.e. government effectiveness, regulatory quality, and rule of law) influences Islamic banking performance. Based on the interaction model, government effectiveness and regulatory quality have a negative and statistically significant impact on ZROA. Conversely, government effectiveness and regulatory quality positively and statistically influence financial stability, as measured by NPLs. As for the rule of law, financial stability (i.e., ZROA) can be achieved in a strict environment when Islamic banks are inefficient.

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Section: Introductionmentioning

confidence: 99%

Interplay of Institutional Quality, Efficiency, and Stability in The Islamic Banking Sector of Malaysia

MORTADZA,

PURWANINGSIH,

TRINUGROHO

et al. 2024

IJEM

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“…The rapid growth of the Islamic Finance Industry since 2010 is a reflection of the massive worldwide fintech industry's expansion to produce goods and services based on the Islamic Shariah (Baber & Baki Billah, 2022). Husseini et al (2019) commented that Islamic banking is defined as banking concepts backed by Shariah, and Shariah laws are backed up by the acceptance of different scholars on one point. Islamic financing refers to providing Muslims with financial services following Shariah, the Islamic legal code, and forbidding ambiguity or interest to satisfy their particular requirements (Shah et al, 2023).…”

Section: Introductionmentioning

confidence: 99%

Factors Influencing the Behavioural Intention to Adopt Islamic Banking in Pakistan with the Mediating Role of Attitude

Subhani,

Malik,

Azeem Naz

et al. 2023

JPR

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In Pakistan, the understanding percentage of products offered by Islamic banks is less than 8%, and it is the biggest challenge for the Islamic financial system to increase the compassion level of people about their laws offered products and services. This study investigates the relationship between attitude, perceived behavioural control, perceived ease of use, perceived usefulness, subjective norms, and intention to investigate the low adoption of Islamic banking in Pakistan. The study also analyses the mediating role of attitude and willingness to adopt Islamic banking. Partial least square structural equation modeling was used to examine the hypotheses. The findings revealed that attitude, subjective norms, perceived ease of use, and perceived usefulness significantly impact the intention to use Islamic Banking. Similarly, subjective norms, perceived usefulness, and perceived ease of use significantly impact attitude. However, perceived behavioural control does not substantially affect attitude and intention to use Islamic banking. Moreover, the study also revealed a significant mediating role of attitude between subjective norms, perceived usefulness, perceived ease of use, and intention to adopt Islamic Banking. These findings indicate that Banks should target the public and start a campaign through electronic and print media. Banks should provide information about their rules and regulations, which are genuinely according to Shariah, ultimately leading to people's positive attitude toward adopting Islamic banking.

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“…In the context of this article, Malaysia has established its place as a global leader in Islamic banking (Husseini et al, 2019;Komijani & Taghizadeh-Hesary, 2018). It is due to the considerable efforts made by the Malaysian lawmakers to enhance the Islamic banking dispute resolution framework, which includes litigation (court proceedings) and alternative dispute resolution (ADR) mechanisms, such as traditional arbitration, traditional mediation.…”

Section: Introductionmentioning

confidence: 99%

The Regulatory Framework Governing Traditional Arbitration in Resolving Islamic Banking Disputes in Malaysia: The Time for Change

Labanieh

Hussain

Mahdzir

2021

JHN

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Introduction toThe Problem: Malaysia has established its place as a global leader in Islamic banking due to the considerable efforts made by the Malaysian lawmakers to enhance the Islamic banking dispute resolution framework and provide the Islamic banking disputants with several resolution mechanisms, such as traditional arbitration. However, using traditional arbitration in resolving Islamic banking disputes is not free from criticisms. Therefore, there is a need to find an alternative or enhanced form of traditional arbitration mechanism. Purpose/Objective Study: This article examines the regulatory framework governing traditional arbitration in resolving Islamic banking disputes in Malaysia. Design/Methodology/Approach: This article is based on doctrinal legal research Methodology. Primary data was secured from several sources, such as Acts, Laws, and Court Cases. While secondary data was collected from books, journal articles, and online databases. Both data are analyzed by using critical and analytical approaches. Findings: It is found that Arbitration Act 2005 (Act 646) and I-Arbitration Rules 2018 have been subjected to several amendments to align with the international norms and best practices. However, Malaysian lawmakers should start thinking out of the box by reinforcing the Islamic banking disputants with an effective resolution mechanism known as electronic arbitration (hereinafter referred to as "e-arbitration"). Doing so would facilitate prompt access to justice in Islamic banking disputes in Malaysia.

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Islamic Banking Revolution in Malaysia: A Review

Cited by 6 publications

References 28 publications

Interplay of Institutional Quality, Efficiency, and Stability in The Islamic Banking Sector of Malaysia

Interplay of Institutional Quality, Efficiency, and Stability in The Islamic Banking Sector of Malaysia

Factors Influencing the Behavioural Intention to Adopt Islamic Banking in Pakistan with the Mediating Role of Attitude

The Regulatory Framework Governing Traditional Arbitration in Resolving Islamic Banking Disputes in Malaysia: The Time for Change

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