Banking

Diverge or converge – tectonic shifts for Islamic banks

The Malaysian Islamic banking landscape could look dramatically different in the next few months as banks begin merger negotiations in an attempt to strengthen their balance sheet and distribution network to survive in an increasingly competitive...


Banking

IAs and trade finance to prop declining Shariah banking growth

In the central bank’s Financial Stability and Payment System Report published earlier this year, the regulator noted that Islamic banking assets grew 8.3% in 2016, the first time the asset expansion rate has slipped into single-digit zone (growth...


Banking

Tawarruq banking contracts on the rise

Controversial as it may be, reverse Murabahah contracts are gaining traction year-on-year solidifying its position as the most popular Shariah banking contract in Malaysia. Tawarruq financing, according to latest central bank data, grew over 34%...


Banking

Volatility in construction, finance and insurance sectors adversely impacts Islamic banking asset quality

Malaysian banks – both conventional and Islamic – have not been immune to the macroeconomic pressures of the Brexit vote, the election of Donald Trump as the US president, spiraling Asian currencies and a widespread slowdown in global economic...


Banking

Islamic financing to surpass conventional loan growth

2017 is shaping up to be a good year for Islamic banks as it looks likely that they would continue to outperform their conventional peers amid strong support from regulators to expand the Shariah finance brand abroad. While conventional loans...


Banking

BANKING & FINANCE

KNM Capital secures Islamic financing
KNM Capital (PIC), a unit of KNM Group, has secured RM360 million (US$86.6 million)-worth of financing comprising an Islamic guarantee facility based on the Al-Kafalah principle of up to RM200 million (US$48...


Banking

Developer financing: Bane or boon to the banking industry?

As part of ongoing efforts to encourage homeownership among Malaysians, the Ministry of Urban Wellbeing, Housing and Local Government recently drew up an initiative allowing property developers to extend home financing. The move may be seen as an...


Banking

Islamic financing continues growth momentum

The Malaysian economy, whose revenues are largely dependent on oil and gas exports, may be taking a hit by the prolonged low oil prices since June 2014 but its Islamic banking sector, however, has defied this predicament: it posted a steady growth...


Banking

Banking

Bank Islam launches Islamic credit card
Bank Islam Malaysia on the 13th September launched the Bank Islam VISA Infinite Business Card-i for its commercial and corporate clients. AmBank Islamic and Johor in housing partnership


Banking

Malaysia on track to achieving 40% Islamic banking market share target by 2020

Islamic banking in Malaysia has come a long way since its first establishment in 1983. Currently, there are 16 Islamic banks out of a total of 43 banks in Malaysia, of which five are stand-alone fully-fledged Islamic banks and 11 are Islamic...