1. CURRENT ISSUES IN
INTERNATIONAL AND
OFFSHORE BANKING
(GB30403)
PROJECT TITLE:
FUTURE PROSPECTS OF
ISLAMIC FINANCIAL
INSTITUTIONS IN MALAYSIA
GROUP NAME: ANA IVANOVIC (RANKED 14TH WTA)

2. In the name of
Allah, the most
Beneficent, the
Most Merciful.

3. SCOPE OF STUDY
This study explores and analyses the future prospect of
Islamic financial institution in Malaysia by highlighting a few main
areas of Islamic finance such as principles and Islamic finance
products. Beside that, we also had see the role and function of
Islamic financial institution in Malaysia from the past success and
determines the opportunities and challenges that will effect the
future prospect of Islamic financial institution.
OBJECTIVES
a) To examine the principles and products of Islamic finance with the
growth of Islamic financial institution
b) To study the role and functions of Islamic financial institution in
Malaysia
c) To investigate the opportunities and challenges that effect Islamic
financial institution

4. Banks, Financial Institution and
Other businesses
ALL BUSINESSES
Financial
Institutions
Islamic Financial
All Banks Institutions
Islamic
Banks

5. Regulations/Policies guidelines
Central Legal Framework
Bank Government
Public opinion/Religious Rulings
Consumers Madrasas/
Religious
Demand for Products & Services Scholars
External Islamic
Financial
Internal Institution Shariah supervision
Vision & Leadership
Shariah
Management Adviser/
Shariah
Productivity Board
Capital
Staff
Sponsors

6. 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.

7. Islamic financial products
 Profit sharing financial products
 Advance purchase financial products
 Deposit products
 Insurance products
 Sukuk

8. Role and Functions of Islamic
Financial Institution in
Malaysia
 Government Regulations and
Incentives.
 Islamic Organization
 Education
 Cooperation Between Countries.
 Banking.

9. Challenges and Opportunities
in Islamic Financial Institution
 Need to develop products, services
and standards in line with the times.
 Exploring new markets
 Cooperation with various institutions

10. 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