Prof. Dr. Saiful Azhar Rosly
Qualification:PhD in Economics, Universiti Kebangsaan Malaysia. (1994)
Fields/Area of Specialization:Islamic Economics, Islamic Banking, Finance and Investment
Prof. Dr. Saiful Azhar Rosly is a professor of Islamic economics and banking who has taught courses such as Islamic economics, Islamic banking and finance, Islamic financial system, Islamic banking system and operation, Islamic capital market, money and banking, economic development, history of economic thought, managerial economics, intermediate microeconomics, macroeconomics and principles of economics He obtained undergraduate and masters degree in economics from Northern Illinois University, DeKalb, USA and Ph.D in economics from the National University of Malaysia.

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Showing results 1 to 20 of 37
  • item.jpg
  • PhD


  • Authors: Ludeen, Abdullah (2019)

  • The first objective of this study aims to investigate the current status of financial inclusion and the second research objective aims to study the determinants of populations' refusal or inability to participate in banking system. The qualitative approach is used for the first research objective whereas quantitative technique is used to address the second objective. For the purpose of quantitative approach, primary data was collected through survey questionnaires from financially excluded population (individuals without a bank account or having only salary account) in Kabul province to answer the hypotheses outlined for this study. The data was analyzed using Structural Equation Mode...

  • item.jpg
  • PhD


  • Authors: Omer, Gamal Salih (2019)

  • This research aims to examine the relationship between Islamic banks' profitability and shareholders' value with the market structures, ownership structures, and financial risk factors, and to test for any differences in these performances between the Islamic and conventional banks. The impacts of both market and ownership structures and financial risks of banking performance is recognized globally and critical for the banking industry. The market and ownership structures are considered pertinent as they indicate competitive environment in which banks can lower costs, extend access to finance, and build effectiveness while garnering impacts of the financial risks will promote financia...

  • item.jpg
  • PhD


  • Authors: Mohd Daud, Mohd Ariff (2019)

  • The provision of shelter is a fundamental human right as implied in the Maqasid al-Shari'ah, hence Islamic finance should provide avenues to facilitate society in buying affordable homes. This challenge covers the funding aspect of affordable housing development albeit other critical challenges associated such as high land cost, compliance and construction cost, and developers' profit margin. The issue is that market forces dictate property prices that many cannot afford; hence lack of affordable housing is a serious issue being faced by major cities around the globe, including Malaysia. As the public resort to government assistance for policy change to support more affordable housing...

  • Islamic_conception_of_psychological_nature_of_man_shinaj_saiful.pdf.jpg
  • Journal Article


  • Authors: Shamsudheen, Shinaj Valangattil; Rosly, Saiful Azhar (2018)

  • This paper aims to develop and validate a scale for Islamic conception of psychological nature of man. Al-Ghazali's model of psychological nature of man considered as the theoretical background of the study. Content validity test and factor analysis are used to refine measurement items and define and validate the scale. In total, 362 samples were collected from Islamic banking practitioners in UAE. Item statements are refined through content validation test. Three dimensions are extracted, i.e. 'Intellect,' 'Satanic element' 'Divine Knowledge,' through exploratory factor analysis and evidence of validation of scale/construct is reported through confirmatory factor analysis.

  • Islamic_finance_grasping_with_price_and_profit_theory_saiful.pdf.jpg
  • Industry Article


  • Authors: Rosly, Saiful Azhar (2018)

  • The Halal industry comprising of bank and non-banking firms is hardly visible in theoretical rigor except for the Shariah rules it promotes to exert religious labelling. While Islamic banks pay greater attention the elimination of riba, gambling and ambiguities in financing contracts to claim Shariah legitimacy, non-banking companies are more concerned about halal slaughtering, avoidance of pork in the production process, prevention of food adulteration, promoting hygiene in food preparation and many more.

  • how_to_expand_role_islamic_banking_trading_saiful.pdf.jpg
  • Industry Article


  • Authors: Rosly, Saiful Azhar (2018)

  • Ever since the establishment of Islamic banks in the 1970s, the difficulty in executing actual buy and sell transactions as the Quran commanded in the verse "Allah has permitted al-bay but prohibits riba" (Al-Baqarah 275) has spurred the industry into using questionable products that resemble interest-bearing loans as evident now in tawaruq munazzam and earlier in bay al-enah. Much of this unfortunate development in Islamic banking has to do with its deposit-taking function. Doing so requires the bank to follow stringent Basel Accord capital requirement against any risky positions it took in the business such as equity, leasing and trading positions. The trading business, namely buy a...

  • The_impact_of_delisting_Shariah_compliant_stocks_on_Islamic_investments_Saiful.pdf.jpg
  • Industry Article


  • Authors: Rosly, Saiful Azhar (2018)

  • Islamic investments as a critical component of the Halal supply chain received considerable attention in the global financial market when the Dow Jones Islamic market Index (DJIM) was established in 1999, followed by Financial Times Stock Exchange (FTSE), Standard and Poor (S&P) and others. Malaysia took global leadership in the construction of Shariah Indices in 1999 and launched the FTSE Bursa Malaysia Emas Shariah Index in 2007. One fundamental feature of the Shariah Indices is the screening process before the stock can be identified as Shariah compliant. The screening methodology differs to some degree among the major Shariah stock indices but essentially settle to affirm consensu...

  • risk_taking_behavior_capital_adequacy_mixed_banking_system_hishamuddin_buerhan_saiful_mansur.pdf.jpg
  • Journal Article


  • Authors: Abdul Wahab, Hishamuddin; Saiti, Buerhan; Rosly, Saiful Azhar; Mohammed Masih, Abul Mansur (2017)

  • This study is the first attempt to investigate the relationship between the level of risky assets and capital level in a mixed Malaysian banking system covering 83 months starting December 2006. The results of dynamic OLS (DOLS) indicate positive relationship between capital ratio (CAR) and risk weighted asset ratio (RWA) in the long run. Furthermore, the causality analysis based on panel VECM and two-step dynamic System GMM indicates unidirectional causality from CAR to RWA. Our results further suggest that higher capital growth and capital buffer provide an extra cushion for the Malaysian banks to pursue relatively riskier financial activities, and the nature of risk taking behavior...

  • Property_rights_and_shariah_non-compliance_risk_saiful.jpg.jpg
  • Chapter in Book


  • Authors: Rosly, Saiful Azhar (2017)

  • This chapter attempts to argue that an organized effort to avoid such risks due to the financial infrastructure rigidities may invite non-compliance with shariah rules. This is due to the fact that the shariah requires Islamic financial institutions to take ownership of the goods it intends to sell as a fundamental principle in contract law and to move the title to the buying party once the sale is executed. Hence this chapter critically examines the concept of al-bay and property rights in Islam in relation to the constraints posed by the existing financial infrastructure, namely capital requirement and taxation, on the taking of risks by Islamic banks.

  • Measuring_Shariah_non_compliance_risk_saiful_arzim_ahcene.pdf.jpg
  • Journal Article


  • Authors: Rosly, Saiful Azhar; Naim, Muhammad Arzim; Lahsasna, Ahcene (2017)

  • The purpose of this paper is to examine the meaning, nature and measurement of Shariah non-compliant risk faced by Islamic banks. Al-bai-bithaman ajil (BBA) contract documentation is analyzed in the light of the legal environment in Malaysia and measurement of Shariah non-compliant risk based on constructed or hypothetical cases. Shariah non-compliant risk will adversely affect bank's earnings when BBA contracts are deemed invalid in the court of law, either in a foreclosure or ruling via court declaration. The paper is written based on content analysis, Malaysian legal cases with hypothetical examples for better understanding. Islamic banking should be able to use the findings to est...

  • PhD_Determinants_of_perceptions_of_Islamic_banks_performance_Ahmed_Abdelgadir.pdf.jpg
  • PhD


  • Authors: Elobeid Mohamed, Ahmed Abdelgadir (2017)

  • This imbalance nature of Islamic bank's performance is of great concern, which motivates this research, which is to examine the determinants of the imbalance of the imbalance nature of Islamic banks' performance in Sudan. In doing so, it seeks to fulfill three main objectives, namely examining the imbalance nature of Islamic banks' performance in Sudan, examining the awareness of the policy makers and the Islamic banks' managers to this imbalance nature, and to investigate its determinants ...

  • item.jpg
  • Master


  • Authors: Ali, Md Hakim (2017)

  • After the global financial crisis, liquidity management has been a great concern to both Islamic and conventional banks, as liquidity management is linked to the bank's profitability and overall sustainability of financial system. While shortage of liquidity has taken centre-stage in Basel 3 reforms as a consequence of the US subprime loan crises, the problem of excess liquidity in Islamic banking remains unresolved in view of the lack of product offerings like medium term sukuk that should give relatively higher yields than short-term Islamic securities ...

  • item.jpg
  • Master


  • Authors: Mahmood Sanusi, Ilham (2017)

  • This study attempts to investigate the aggressive and highly risky financing behaviour of Islamic banks operating in Malaysia. Particular reference was given to Islamic banks' credit risk-weighted assets for the purpose of determining the state of aggressive risk-taking behaviour in relation to the level of debt financing undertaken. 15 Islamic banks operating in Malaysia were examined over a short period of four years from 2013 - 2016; primarily due to limitations afforded by Pillar 3 Disclosure availabilities. Regulatory guidelines were assessed via the Bank Negara Malaysia (BNM) 2015 Capital Adequacy Framework for Islamic Banking (CAFIB) in attempt to ...

  • credit_risk_sharing_Islamic_banking_case_Islamic_deposits_investment_accounts_Malaysia_saiful.pdf.jpg
  • Journal Article


  • Authors: Rosly, Saiful Azhar (2016-08-04)

  • This paper argues that the introduction of the investment account (IA) in Islamic banking amongst others should reduce potential Shariah non-compliance risk arising from the disproportionate distribution of income to depositors and banks. While impairment expenses are changed to depositors, the returns on mudaraba deposits (ROMD) do not seem to favour depositors as the ROMD has been consistently lower than returns on equity (ROE) despite evidencing some form of credit-risk sharing between banks and mudaraba depositors as outlined by Framework of Rate of Return of Bank Negara Malaysia. When investment accounts are channeled to fund murabaha transactions, the credit risk should be solel...

  • PhD_determinants_profit_rates_true_sale_based_Islamic_financing_Safeza_Mohd_Sapian.pdf.jpg
  • PhD


  • Authors: Mohd Sapian, Safeza (2016)

  • The fundamental principle of true sale is based on the ownership state of the subject matter of sale where the selling party must own the asset legally and keep full ownership of the goods before making the sale. In the riba-free system, the Islamic bank assumes a role of a trading entity. It undertakes a trading position and exposes itself to business risk as the asset is booked on its balance sheet. It follows that the profit rate it charges the customer will reflect an additional risk-premium to account for the business risk exposure ...

  • linkages_co-movement_between_international_stockmarket_returns_Case_Dow_Jones_Islamic_Dubai_FinancialMarket_index_mm.pdf.jpg
  • Journal Article


  • Authors: El Alaoui, AbdelKader Ouatik; Dewandaru, Ginanjar; Rosly, Saiful Azhar; Mohammed Masih, Abul Mansur (2015)

  • Using wavelet techniques (discrete and continuous), this paper is the first attempt to investigate the co-movement dynamics at different time scales or horizons of Islamic Dubai Financial Market (DFM-UAE) index returns with their counterpart regional Islamic indices returns such as GCC index, ASEAN index, Developing Countries index, Emerging Countries Index, and the Global Sukuk. Finally, we examine the impact of the LIBOR on the Islamic DFM-UAE return. Our first finding is that the two markets DFM_UAE, and (GCC and Saudi) are converging, in the long run, to the same level of risk and volatility with the Global Sukuk index. The wavelet analysis based on betas indicates a strong non-ho...

  • item.jpg
  • PhD


  • Authors: Naim, Muhammad Arzim (2015)

  • The objective of this study is to investigate the factors affecting the rise of Shariah non-compliance risk that can bring Islamic banks to succumb to monetary loss. The study is also intent to propose a measurement of Shariah non-compliance risk via accounting technique. Subsequently, the study has also entails to identify the causal modelling of the Shariah non-compliance risk ...

  • islamic_banking_malaysia_unchartered_waters_saiful.pdf.jpg
  • Journal Article


  • Authors: Abdul Kareem, Mohamed Ariff; Rosly, Saiful Azhar (2011)

  • This paper explores the Islamic banking business in Malaysia since its beginning in 1983. The Islamic banking sector has achieved its target of 20% market share in assets and deposits in 2010. To boost the industry's competitiveness and efficiency, the demands of the market forces will have to be delicately balanced with the dictates of the Shari'ah. The search for niche Islamic banking products warrants enhancements in the current regulatory, legal, and fiscal infrastructure for Islamic banking, without which these products cannot be a viable alternative to the conventional ones. While the prevailing infrastructure is conducive to Islamic banking products that hold similar characteri...

Prof. Dr. Saiful Azhar Rosly
author picture
Qualification: PhD in Economics, Universiti Kebangsaan Malaysia. (1994)
Fields/Area of Specialization: Islamic Economics, Islamic Banking, Finance and Investment
Prof. Dr. Saiful Azhar Rosly is a professor of Islamic economics and banking who has taught courses such as Islamic economics, Islamic banking and finance, Islamic financial system, Islamic banking system and operation, Islamic capital market, money and banking, economic development, history of economic thought, managerial economics, intermediate microeconomics, macroeconomics and principles of economics He obtained undergraduate and masters degree in economics from Northern Illinois University, DeKalb, USA and Ph.D in economics from the National University of Malaysia.
Showing results 1 to 20 of 37
  • item.jpg
  • PhD


  • Authors: Ludeen, Abdullah (2019)

  • The first objective of this study aims to investigate the current status of financial inclusion and the second research objective aims to study the determinants of populations' refusal or inability to participate in banking system. The qualitative approach is used for the first research objective whereas quantitative technique is used to address the second objective. For the purpose of quantitative approach, primary data was collected through survey questionnaires from financially excluded population (individuals without a bank account or having only salary account) in Kabul province to answer the hypotheses outlined for this study. The data was analyzed using Structural Equation Mode...

  • item.jpg
  • PhD


  • Authors: Omer, Gamal Salih (2019)

  • This research aims to examine the relationship between Islamic banks' profitability and shareholders' value with the market structures, ownership structures, and financial risk factors, and to test for any differences in these performances between the Islamic and conventional banks. The impacts of both market and ownership structures and financial risks of banking performance is recognized globally and critical for the banking industry. The market and ownership structures are considered pertinent as they indicate competitive environment in which banks can lower costs, extend access to finance, and build effectiveness while garnering impacts of the financial risks will promote financia...

  • item.jpg
  • PhD


  • Authors: Mohd Daud, Mohd Ariff (2019)

  • The provision of shelter is a fundamental human right as implied in the Maqasid al-Shari'ah, hence Islamic finance should provide avenues to facilitate society in buying affordable homes. This challenge covers the funding aspect of affordable housing development albeit other critical challenges associated such as high land cost, compliance and construction cost, and developers' profit margin. The issue is that market forces dictate property prices that many cannot afford; hence lack of affordable housing is a serious issue being faced by major cities around the globe, including Malaysia. As the public resort to government assistance for policy change to support more affordable housing...

  • Islamic_conception_of_psychological_nature_of_man_shinaj_saiful.pdf.jpg
  • Journal Article


  • Authors: Shamsudheen, Shinaj Valangattil; Rosly, Saiful Azhar (2018)

  • This paper aims to develop and validate a scale for Islamic conception of psychological nature of man. Al-Ghazali's model of psychological nature of man considered as the theoretical background of the study. Content validity test and factor analysis are used to refine measurement items and define and validate the scale. In total, 362 samples were collected from Islamic banking practitioners in UAE. Item statements are refined through content validation test. Three dimensions are extracted, i.e. 'Intellect,' 'Satanic element' 'Divine Knowledge,' through exploratory factor analysis and evidence of validation of scale/construct is reported through confirmatory factor analysis.

  • Islamic_finance_grasping_with_price_and_profit_theory_saiful.pdf.jpg
  • Industry Article


  • Authors: Rosly, Saiful Azhar (2018)

  • The Halal industry comprising of bank and non-banking firms is hardly visible in theoretical rigor except for the Shariah rules it promotes to exert religious labelling. While Islamic banks pay greater attention the elimination of riba, gambling and ambiguities in financing contracts to claim Shariah legitimacy, non-banking companies are more concerned about halal slaughtering, avoidance of pork in the production process, prevention of food adulteration, promoting hygiene in food preparation and many more.

  • how_to_expand_role_islamic_banking_trading_saiful.pdf.jpg
  • Industry Article


  • Authors: Rosly, Saiful Azhar (2018)

  • Ever since the establishment of Islamic banks in the 1970s, the difficulty in executing actual buy and sell transactions as the Quran commanded in the verse "Allah has permitted al-bay but prohibits riba" (Al-Baqarah 275) has spurred the industry into using questionable products that resemble interest-bearing loans as evident now in tawaruq munazzam and earlier in bay al-enah. Much of this unfortunate development in Islamic banking has to do with its deposit-taking function. Doing so requires the bank to follow stringent Basel Accord capital requirement against any risky positions it took in the business such as equity, leasing and trading positions. The trading business, namely buy a...

  • The_impact_of_delisting_Shariah_compliant_stocks_on_Islamic_investments_Saiful.pdf.jpg
  • Industry Article


  • Authors: Rosly, Saiful Azhar (2018)

  • Islamic investments as a critical component of the Halal supply chain received considerable attention in the global financial market when the Dow Jones Islamic market Index (DJIM) was established in 1999, followed by Financial Times Stock Exchange (FTSE), Standard and Poor (S&P) and others. Malaysia took global leadership in the construction of Shariah Indices in 1999 and launched the FTSE Bursa Malaysia Emas Shariah Index in 2007. One fundamental feature of the Shariah Indices is the screening process before the stock can be identified as Shariah compliant. The screening methodology differs to some degree among the major Shariah stock indices but essentially settle to affirm consensu...

  • risk_taking_behavior_capital_adequacy_mixed_banking_system_hishamuddin_buerhan_saiful_mansur.pdf.jpg
  • Journal Article


  • Authors: Abdul Wahab, Hishamuddin; Saiti, Buerhan; Rosly, Saiful Azhar; Mohammed Masih, Abul Mansur (2017)

  • This study is the first attempt to investigate the relationship between the level of risky assets and capital level in a mixed Malaysian banking system covering 83 months starting December 2006. The results of dynamic OLS (DOLS) indicate positive relationship between capital ratio (CAR) and risk weighted asset ratio (RWA) in the long run. Furthermore, the causality analysis based on panel VECM and two-step dynamic System GMM indicates unidirectional causality from CAR to RWA. Our results further suggest that higher capital growth and capital buffer provide an extra cushion for the Malaysian banks to pursue relatively riskier financial activities, and the nature of risk taking behavior...

  • Property_rights_and_shariah_non-compliance_risk_saiful.jpg.jpg
  • Chapter in Book


  • Authors: Rosly, Saiful Azhar (2017)

  • This chapter attempts to argue that an organized effort to avoid such risks due to the financial infrastructure rigidities may invite non-compliance with shariah rules. This is due to the fact that the shariah requires Islamic financial institutions to take ownership of the goods it intends to sell as a fundamental principle in contract law and to move the title to the buying party once the sale is executed. Hence this chapter critically examines the concept of al-bay and property rights in Islam in relation to the constraints posed by the existing financial infrastructure, namely capital requirement and taxation, on the taking of risks by Islamic banks.

  • Measuring_Shariah_non_compliance_risk_saiful_arzim_ahcene.pdf.jpg
  • Journal Article


  • Authors: Rosly, Saiful Azhar; Naim, Muhammad Arzim; Lahsasna, Ahcene (2017)

  • The purpose of this paper is to examine the meaning, nature and measurement of Shariah non-compliant risk faced by Islamic banks. Al-bai-bithaman ajil (BBA) contract documentation is analyzed in the light of the legal environment in Malaysia and measurement of Shariah non-compliant risk based on constructed or hypothetical cases. Shariah non-compliant risk will adversely affect bank's earnings when BBA contracts are deemed invalid in the court of law, either in a foreclosure or ruling via court declaration. The paper is written based on content analysis, Malaysian legal cases with hypothetical examples for better understanding. Islamic banking should be able to use the findings to est...

  • PhD_Determinants_of_perceptions_of_Islamic_banks_performance_Ahmed_Abdelgadir.pdf.jpg
  • PhD


  • Authors: Elobeid Mohamed, Ahmed Abdelgadir (2017)

  • This imbalance nature of Islamic bank's performance is of great concern, which motivates this research, which is to examine the determinants of the imbalance of the imbalance nature of Islamic banks' performance in Sudan. In doing so, it seeks to fulfill three main objectives, namely examining the imbalance nature of Islamic banks' performance in Sudan, examining the awareness of the policy makers and the Islamic banks' managers to this imbalance nature, and to investigate its determinants ...

  • item.jpg
  • Master


  • Authors: Ali, Md Hakim (2017)

  • After the global financial crisis, liquidity management has been a great concern to both Islamic and conventional banks, as liquidity management is linked to the bank's profitability and overall sustainability of financial system. While shortage of liquidity has taken centre-stage in Basel 3 reforms as a consequence of the US subprime loan crises, the problem of excess liquidity in Islamic banking remains unresolved in view of the lack of product offerings like medium term sukuk that should give relatively higher yields than short-term Islamic securities ...

  • item.jpg
  • Master


  • Authors: Mahmood Sanusi, Ilham (2017)

  • This study attempts to investigate the aggressive and highly risky financing behaviour of Islamic banks operating in Malaysia. Particular reference was given to Islamic banks' credit risk-weighted assets for the purpose of determining the state of aggressive risk-taking behaviour in relation to the level of debt financing undertaken. 15 Islamic banks operating in Malaysia were examined over a short period of four years from 2013 - 2016; primarily due to limitations afforded by Pillar 3 Disclosure availabilities. Regulatory guidelines were assessed via the Bank Negara Malaysia (BNM) 2015 Capital Adequacy Framework for Islamic Banking (CAFIB) in attempt to ...

  • credit_risk_sharing_Islamic_banking_case_Islamic_deposits_investment_accounts_Malaysia_saiful.pdf.jpg
  • Journal Article


  • Authors: Rosly, Saiful Azhar (2016-08-04)

  • This paper argues that the introduction of the investment account (IA) in Islamic banking amongst others should reduce potential Shariah non-compliance risk arising from the disproportionate distribution of income to depositors and banks. While impairment expenses are changed to depositors, the returns on mudaraba deposits (ROMD) do not seem to favour depositors as the ROMD has been consistently lower than returns on equity (ROE) despite evidencing some form of credit-risk sharing between banks and mudaraba depositors as outlined by Framework of Rate of Return of Bank Negara Malaysia. When investment accounts are channeled to fund murabaha transactions, the credit risk should be solel...

  • PhD_determinants_profit_rates_true_sale_based_Islamic_financing_Safeza_Mohd_Sapian.pdf.jpg
  • PhD


  • Authors: Mohd Sapian, Safeza (2016)

  • The fundamental principle of true sale is based on the ownership state of the subject matter of sale where the selling party must own the asset legally and keep full ownership of the goods before making the sale. In the riba-free system, the Islamic bank assumes a role of a trading entity. It undertakes a trading position and exposes itself to business risk as the asset is booked on its balance sheet. It follows that the profit rate it charges the customer will reflect an additional risk-premium to account for the business risk exposure ...

  • linkages_co-movement_between_international_stockmarket_returns_Case_Dow_Jones_Islamic_Dubai_FinancialMarket_index_mm.pdf.jpg
  • Journal Article


  • Authors: El Alaoui, AbdelKader Ouatik; Dewandaru, Ginanjar; Rosly, Saiful Azhar; Mohammed Masih, Abul Mansur (2015)

  • Using wavelet techniques (discrete and continuous), this paper is the first attempt to investigate the co-movement dynamics at different time scales or horizons of Islamic Dubai Financial Market (DFM-UAE) index returns with their counterpart regional Islamic indices returns such as GCC index, ASEAN index, Developing Countries index, Emerging Countries Index, and the Global Sukuk. Finally, we examine the impact of the LIBOR on the Islamic DFM-UAE return. Our first finding is that the two markets DFM_UAE, and (GCC and Saudi) are converging, in the long run, to the same level of risk and volatility with the Global Sukuk index. The wavelet analysis based on betas indicates a strong non-ho...

  • item.jpg
  • PhD


  • Authors: Naim, Muhammad Arzim (2015)

  • The objective of this study is to investigate the factors affecting the rise of Shariah non-compliance risk that can bring Islamic banks to succumb to monetary loss. The study is also intent to propose a measurement of Shariah non-compliance risk via accounting technique. Subsequently, the study has also entails to identify the causal modelling of the Shariah non-compliance risk ...

  • islamic_banking_malaysia_unchartered_waters_saiful.pdf.jpg
  • Journal Article


  • Authors: Abdul Kareem, Mohamed Ariff; Rosly, Saiful Azhar (2011)

  • This paper explores the Islamic banking business in Malaysia since its beginning in 1983. The Islamic banking sector has achieved its target of 20% market share in assets and deposits in 2010. To boost the industry's competitiveness and efficiency, the demands of the market forces will have to be delicately balanced with the dictates of the Shari'ah. The search for niche Islamic banking products warrants enhancements in the current regulatory, legal, and fiscal infrastructure for Islamic banking, without which these products cannot be a viable alternative to the conventional ones. While the prevailing infrastructure is conducive to Islamic banking products that hold similar characteri...