Islamic banking system in Malaysia: How workable it is? / Mohd Najib Mohd Saad

"Those who benefit from interest shall be raised like those who have been driven to madness by the touch of the of the Devil; this is because they say:"Trade is like interest." While God has permitted trade and forbidden interest.Hence those who have received the admonition from their Lord and desist, may have what has already passed,their case being entrusted to God; but those who revert shall be the inhabitants of the fire and abide therein forever." (Surah Al-Baqarah, verse 275-281) The principles of Islamic Banking System were established in the Quran 14 centuries ago. The emergence of the system is often related to the revival of Islam and the desire of Muslims to live all aspects of their lives in accordance with the teachings of Islam. Now, an organization of financial institutions operating on these principles has existed worldwide and more formal coordination could result in a nearly global Islamic financial network. Since the establishment of the Dubai Islamic Bank and the multinational Islamic Development Bank in 1975, over 100 such banks have opened for business worldwide. These banks have attracted deposits estimated at over $10 billion; In Malaysia, the Islamic bank established in the country, Bank Islam Malaysia Berhad commenced its operation on March 1, 1983