CURRENT ISSUES ININTERNATIONAL ANDOFFSHORE BANKING(GB30403)PROJECT TITLE:FUTURE PROSPECTS OFISLAMIC FINANCIALINSTITUTIONS IN MALAYSIAGROUP NAME: ANA IVANOVIC (RANKED 14TH WTA)
In the name ofAllah, the mostBeneficent, theMost Merciful.
SCOPE OF STUDY This study explores and analyses the future prospect ofIslamic financial institution in Malaysia by highlighting a few mainareas of Islamic finance such as principles and Islamic financeproducts. Beside that, we also had see the role and function ofIslamic financial institution in Malaysia from the past success anddetermines the opportunities and challenges that will effect thefuture prospect of Islamic financial institution. OBJECTIVES a) To examine the principles and products of Islamic finance with the growth of Islamic financial institutionb) To study the role and functions of Islamic financial institution in Malaysiac) To investigate the opportunities and challenges that effect Islamic financial institution
Banks, Financial Institution andOther businesses ALL BUSINESSES Financial Institutions Islamic Financial All Banks Institutions Islamic Banks
Regulations/Policies guidelines Central Legal Framework Bank Government Public opinion/Religious Rulings Consumers Madrasas/ ReligiousDemand for Products & Services ScholarsExternal Islamic Financial Internal Institution Shariah supervision Vision & Leadership Shariah Management Adviser/ Shariah Productivity Board Capital Staff Sponsors
Principles of Islamic Finance Any predetermined payment over and above the actual amount of principal is prohibited. The lender must share in the profits or losses arising out of the enterprise for which money was lent. Making money from money is not acceptable by Islamic law. Money is only a medium of exchange, and therefore should not be allowed to give rise to more money, via fixed interest payments, simply by being put in a bank or lent to someone else. Gharar (uncertainty, risk or speculation) is also prohibited. Investments should only support practices or products that are not forbidden (or discouraged) by Islam.
Role and Functions of IslamicFinancial Institution inMalaysia Government Regulations and Incentives. Islamic Organization Education Cooperation Between Countries. Banking.
Challenges and Opportunitiesin Islamic Financial Institution Need to develop products, services and standards in line with the times. Exploring new markets Cooperation with various institutions
Institutional development • Domestic & foreign Islamic • Offshore players banks, Islamic banking windows • Liberalised equity policy for Islamic • Islamic capital market players subsidiaries and takaful Legal, Shariah & Reg Product & market • Comprehensive legislation• Comprehensive product range in • Dispute resolution banking, takaful & o Dedicated high financial markets court• Global sukuk - o Arbitration centre sovereign & multilateral o Financial Mediation institutions Bureau • Tax neutrality policy Knowledge and education • Shariah Advisory Council and its governance • Consumer Education & • Fund for Shariah Scholars Awareness Programmes • International best o Promote Shariah practices - IFSB • Complete training dialogues infrastructure o Scholarship o INCEIF, IBFIM & ICLIF o Research grant • International conferences