A comparative study of financial instrument in Iranian and Malaysian Islamic banking system / Mana Akhbari

This study compares financial instruments in Islamic banking operations which is currently practiced in Iran and Malaysia. Both countries started Islamic banking in early 1980's but employed entirely different approaches. Pakistan attempted to convert the entire financial system in accordance with Islamic law at once at national level. Malaysia adopted the gradual application approach. It allowed Islamic and conventional banking systems to operate and to compete for deposits on parallel basis. This study examines the Iran and Malaysian approaches towards the implementation of Islamic banking in their respective countries. It recognizes by practical style and faults that Malaysia bank authorities encountered about non-usury compensate flaws and improve performance of non-usury banking in Iran. Importance of this paper, financial instruments in Islamic banking in both countries was investigated by comparative method from theoretical and practical aspect.