Development Of Islamic Banking In Malaysia

This paper will focus on the historical development of islamic banking in malaysia from the creation of the haj pilgrim s fund board in the 1960s to the current islamic banking scene of 17.

Development of islamic banking in malaysia. Islamic finance development development of the islamic banking sector creating an impact on society and economy through value based intermediation vbi the islamic banking industry in malaysia has advanced significantly over the years. In 2008 islamic banking accounted for 7 1 per cent of malaysia s financial sector. Pwsbh was set up as an institution for muslims to save for their hajj pilgrimage to mecca expenses in 1969 pwsbh merged with pejabat urusan haji to form lembaga urusan dan tabung haji now known as lembaga tabung haji. From a market share of 5 3 in 2000 islamic financing now accounts for 34 9 of total loans and financing.