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Islamic Finance

 Islamic Financing Essay

ACKNOWLEDGEMENT

The achievement and end result of this project require a large amount of guidance and assistance from a large number of people and are extremely privileged to have got this all along the completion of our project. Whatever we now have done is due to the assistance and assistance that we acquire and we must not forget to thank them.

You want to express our deepest appreciation to Mister Zainal Azhar Bin Zainal Azim who is our lecturer for Islamic Finance on giving all of us the opportunity to work on the assignment and offering us with lots of support and guidance which includes helped us to full the project on time. This kind of assignment has brought us to make lots of analysis and we discovered to acquire new things about Islamic Finance and Islamic financial specifically.

Nevertheless, we would also like to give thanks to our many other classmates who have been providing tips, contributing their time and also the co-operation to complete our project on time. Without them, this project would may well not come into it is present contact form.

INTRODUCTION

The compliance with Shariah principles can be an integral feature in the Islamic banking and finance. A highly effective and conducive Shariah platform is imperative in ensuring such conformity. It will underpin a comprehensive and wholesome advancement this sector. An effective Shariah framework is going to harmonize the Shariah interpretations, strengthen the regulatory and supervisory oversight of the market and will also promote and foster a pool area of qualified Shariah advisors.

To achieve the previously mentioned objectives, Financial institution Negara Malaysia has changed the Central Bank of Malaysia Act 1958 to enhance the position and functions of their Shariah Advisory Council pertaining to Islamic Bank and Takaful (SAC). This amendment features accorded the SAC while the sole Shariah authority in Islamic finance. As the only Shariah authority, the LONGCHAMP will be known by the court docket or arbitrator in differences involving Shariah issues in Islamic bank, finance and takaful cases.

To successfully play the role, the SAC functions as a completely independent body. An independent SAC with high level of integrity is going to command public confidence and thereby will boost the market to a increased height. There's also a crucial need to define the partnership between the SAC and Shariah bodies which will act as Shariah advisers on the market. Towards this end, the Shariah body in the Islamic financial institution have to be rationalised. A Shariah human body in the industry which is to be known as the Shariah Panel, will play a complementary function to the BARDA DE GOLF of Bank Negara Malaysia.

In light from the above, Lender Negara Malaysia has well prepared the Guidelines for the Governance of Shariah Committee for the Islamic Banks that manages the governance of Shariah Committee of the Islamic lender.

DEVELOPMENT OF ISLAMIC BANKING IN MALAYSIA

Season Landmark Innovations

1969 Institution of Lembaga Tabung Haji which mobilizes and manages the savings ofMuslims for intention to do the haj 1983 The Islamic Bank Act as well as the first Islamic bank certified is Financial institution Islam Malaysia Berhad proven on you July 1983 1984 Initial licensed takaful operator began

1990 Establishment of the Labuan International Overseas Financial Hub (IOFC) which usually also gives Islamic finance 1993 BNM set up the Skim Perbankan Tanpa Faedah which was afterwards known as Islamic Banking Plan (IBS) that enables conventional banks to offer Islamic windows' banking products 1994 Interbank Islamic Money Market was established. This released the Islamic interbank talon clearing system based on the Mudharabah theory where the deficit of the clearing account of one IBS will be funded by surplus money from other IBS banks or by BNM 1997 Creation of the National Shariah Admonitory Council in BNM 98 Establishment of the 2nd Islamic bank – Bank Muamalat – with the merging in the Islamic bank assets of Bank Bumiputra, Bank of...

References: Laws and regulations of Malaysia, Act 276, Islamic Financial Act 1983

Laws of Malaysia, Work 372, Banking and Banking institutions Act 1989

Laws of Malaysia, Act 759, Islamic Financial Services Work 2013

Islamic Finance and Banking Program, Philosophies, Principles & Techniques by Sudin Haron, Wan Nursofiza Wan Azmi

http://ifp.law.harvard.edu/login/view_pdf/?file=The%20Islamic%20Banking%20System%20in%20Malaysia.pdf&type=Project_Publication

www.bnm.gov.my

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