Development of the legal and regulatory framework for the Islamic banking system in Malaysia / Muhamad Rahimi Osman

Osman, Muhamad Rahimi (2006) Development of the legal and regulatory framework for the Islamic banking system in Malaysia / Muhamad Rahimi Osman. Jurnal CITU, 2 (1). pp. 179-202. ISSN 1823-6146

Abstract

The enactment of Islamic Banking Act (IBA) 1983, considered the first Act of Parliament has been legislated specifically to govern Islamic banking business. Following to the introduction of the IBA, the Malaysian government has enacted new laws such as the Government Investment Act (GIA) and Takaful Act. It also resulted in the amendment of the existing laws such as Banking and Financial Institutions Act (BAFIA), Central Bank of Malaysia Act, Stamp Act, etc. The purpose of this paper is to examine the development of the legal framework for the Malaysian Islamic banking system. In doing so, this paper analyses the statutes which govern Islamic banking system. These statutes could be divided into two parts; firstly the statutes which enacted to govern Islamic banks and secondly the existing statutes which have been amended to accommodate and to facilitate the practice of the Islamic banking system. Since the Shari 'ah Advisory Council plays a crucial role to ensure the Islamic banks comply strictly with the Shari 'ah principles, the final part of this paper will also examines the status and function of the SAC in the Islamic banking industry.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Osman, Muhamad RahimiUNSPECIFIED
Subjects: H Social Sciences > HG Finance > Malaysia
K Law > KBP Islamic law. Sharī'ah. Fiqh > Banks and banking. Qanun al-bunuk. Stock exchange > Malaysia
Divisions: Universiti Teknologi MARA, Shah Alam > Academy of Contemporary Islamic Studies (ACIS)
Journal or Publication Title: Jurnal CITU
ISSN: 1823-6146
Volume: 2
Number: 1
Page Range: pp. 179-202
Item ID: 11540
Uncontrolled Keywords: Islamic banking, Malaysia, Legal framework, Regulatory framework
URI: http://ir.uitm.edu.my/id/eprint/11540

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