Understanding and perception on Bank Muamalat financing products offering: a case study towards the potential of Bank Muamalat financing products in Bintulu / Saopi Taip @ Taif

The emergence of Islamic banking is often related to the revival of Islam and the desire of Muslim to live all aspects of their lives in accordance with the teaching of Islam. The foundations of the philosophies of Islamic Banking are those principles that have been revealed in the Quran and Hadith Revelations, and the Hadiths, which require Muslim to uphold justice and virtue, serve as principles, which guide Islamic banks in managing the business. It philosophies and principals are however not new. A key element of Islamic banking is that it is based on the deriving an economic benefit from a tangible economic activity and sharing it rewards and associated risks. The other key element is prohibition ofRiba, which is known as Interest service in the conventional banking system and promoting Profit and Loss Sharing (PLS) as an alternative of Riba.