Analysis of the Success of the Malaysian Experience in the Development of the Islamic Financial Industry Factors

Abstract

Islamic finance industry has grown rapidly over the last three decades. Its activities of competition and effects on financial markets are getting more and more recognition worldwide and also importantly for its impact on economic development. The Islamic finance industry banking segment has become systemically important. It’s projected to continue to expand in response to economic growth in a dozen countries in a wide range of regions. The purpose of this paper is to discuss the Practices and the prospects of Islamic finance in Malaysia. The paper is going to examine the funding mechanisms and demand in the light of Islamic guidelines principles issued by the Central Bank of Malaysia. The advantages and values of this system make it importance choice to achieve specific investment benefits and meet the requirements.