This article presents an exhaustive list of Islamic Banks operating within Malaysia. The purpose is to provide readers with a comprehensive understanding of the diversity and reach of these financial institutions in the country.
The BNM’s Financial Sector Participants Directory list gives an overview of each bank, highlighting its unique features and contributions to Malaysia’s vibrant Islamic banking sector.
List of Islamic Banks in Malaysia
Affin Islamic Bank
Affin Islamic Bank, a subsidiary of Affin Bank Berhad in Malaysia, operates under the principles of Islamic banking and offers a comprehensive range of Shariah-compliant products and services. This institution was incorporated as an entirely separate entity in 2005 to handle all Islamic banking operations.
The bank’s impressive array of product offerings covers retail, corporate, and investment banking. These include deposit accounts, financing facilities, wealth management services, treasury products, and trade finance services. Additionally, it provides solutions that adhere strictly to the ethics and moral values stipulated by Shariah law.
In its operations, Affin Islamic Bank maintains transparency and ensures customer satisfaction through quality service delivery while contributing significantly towards the growth of Islamic finance within Malaysia.
Al Rajhi Bank
Al Rajhi Bank, one of the most prominent financial institutions, primarily operates under Shariah principles and offers various services including personal financing, home financing, and car financing. This institution aims to provide comprehensive financial solutions that comply strictly with Islamic law. Al Rajhi Bank is a leading player in Malaysia’s Islamic banking sector.
The bank provides an array of deposit products such as savings accounts and term deposits. In addition to traditional banking products, it offers Takaful (Islamic insurance) coverage options for its customers. It emphasizes on digital banking solutions as part of an effort to enhance customer experience.
The growing demand for Shariah-compliant financial services has positioned Al Rajhi Bank as a significant contributor to the expansion of Islamic finance in Malaysia.
Alliance Islamic Bank
Operating under the principles of Shariah, Alliance provides a comprehensive range of financial services much like its counterparts in the industry. Its offerings include personal banking, business banking, and investment services that adhere strictly to Islamic law. The emphasis is on risk sharing, fairness and ethical behaviour in all transactions.
In particular, the bank’s operations do not involve interest-based transactions (riba), uncertain outcomes (gharar) or gambling (maysir). Instead, profit-and-loss sharing arrangements are favoured. This approach contributes to economic justice and social welfare by discouraging speculative activities and encouraging real economic activity.
Alliance’s corporate social responsibility initiatives also align with its mission to promote sustainable development for society at large. This makes Alliance Islamic Bank a significant player in Malaysia’s Islamic finance sector.
AmBank Islamic
Adhering to the principles of Shariah, AmBank offers an extensive range of financial services that include personal and business banking solutions, as well as investment options which strictly abide by Islamic law. As an Islamic institution in Malaysia, it is committed to providing products and services that meet the financial needs of its customers without compromising their religious beliefs.
Services offered by AmBank Islamic extend beyond traditional banking to incorporate various facets of finance. These encompass:
- Home financing options
- Personal financing
- Business financing
AmBank’s dedication towards facilitating commerce and improving lives within a Shariah-compliant framework speaks volumes about its commitment to upholding Islamic values in banking. This commitment ensures a fair and ethical environment for all stakeholders involved.
Bank Islam
As a prominent financial institution, Bank Islam provides an array of Shariah-compliant services and products, catering to the diverse needs of its clientele in a manner that aligns with religious beliefs. The bank plays an instrumental role in developing Malaysia’s Islamic finance industry, having introduced numerous innovative solutions throughout its existence.
Bank Islam’s offerings span across retail banking, business banking and corporate banking sectors. Its product suite includes savings accounts, personal financing options, home financing choices and various investment solutions.
| Services | Description |
|---|---|
| Retail Banking | Provides everyday banking services including current and savings accounts |
| Business Banking | Offers various types of financing for small to medium businesses |
| Corporate Banking | Specializes in large scale transactions for corporations |
| Personal Financing | Financial solutions catered towards individual requirements |
| Home Financing | Shariah-compliant home financing options available |
Their principles uphold ethical operations while meeting clients’ financial goals.
Bank Muamalat
Established in 1999, Bank Muamalat is another significant entity in the realm of Shariah-compliant finance, offering an extensive range of services and products that align with religious principles. This bank has been instrumental in driving the growth of Islamic banking sector within Malaysia.
Bank Muamalat provides a comprehensive suite of financial solutions which includes retail banking, business banking, and investment services.
A pioneer in digital innovation, it launched its mobile banking application as early as 2013 to provide customers with seamless access to their accounts.
Committed to community development, Bank Muamalat engages in numerous corporate social responsibility initiatives including educational programs and charitable donations.
The success story of this institution underscores the viability and potential for growth inherent in ethical, religion-based financial systems.
CIMB Islamic
CIMB Islamic, a leading Shariah-compliant financial institution, has significantly contributed to the growth and development of ethical banking globally. This institution provides comprehensive and innovative financial solutions in compliance with Islamic principles. The range of services includes corporate banking, consumer banking, treasury & markets, as well as asset management. These services are designed to meet the diverse needs of its customers while upholding the values of ethical financing.
The bank’s commitment to promoting economic justice through interest-free transactions has made it a major player in Malaysia’s Islamic finance sector. It maintains high standards of transparency and accountability – fundamentals that have earned trust from clients worldwide. Through these efforts, CIMB Islamic continues to drive sustainable growth while enhancing societal welfare according to the tenets of Islam.
Hong Leong Islamic
Hong Leong’s Shariah-compliant division operates with a focus on providing financial services that adhere to ethical principles and promote equitable economic development. This is achieved via stringent adherence to Islamic banking laws, resulting in an array of products and services tailored for individuals, businesses, and institutions.
The bank offers deposit accounts that operate under the principle of Mudarabah (profit sharing). Investment solutions provided align with the concepts of Musharakah (partnership) and Mudarabah. Financing facilities are structured based on Ijarah (leasing), Murabaha (cost-plus sale), and Tawarruq (monetization).
In essence, Hong Leong Islamic Bank has carved out its niche in Malaysia’s Islamic banking industry by ensuring every transaction maintains Shariah compliance, thus contributing to broader socio-economic equity.
HSBC Amanah
HSBC Amanah, as a division of the global financial conglomerate HSBC, adheres to Shariah principles in offering a comprehensive suite of financial services and products. This includes personal banking, corporate banking, treasury and capital markets, private banking, and asset management.
As part of its commitment to Islamic finance, HSBC Amanah employs an independent Shariah Supervisory Committee to ensure all operations align with Islamic law. The bank also provides educational resources on Islamic finance for customers seeking understanding about this form of ethical investing.
Notably, HSBC Amanah has won numerous awards for its innovative solutions in Islamic finance. These accolades reflect the institution’s effort to merge modern banking practices with traditional Islamic values.
Kuwait Finance House
Kuwait Finance House, established in 1977, is renowned for its strong adherence to Shariah principles and has successfully positioned itself as one of the foremost institutions offering comprehensive financial services in the Middle East. The institution provides various services such as personal finance, investment solutions, and corporate banking that align with Islamic law’s ethical standards.
The bank offers innovative digital platforms for seamless transactional experiences. Kuwait Finance House is also known for its active role in promoting sustainable development initiatives. Ranked among top-tier banks globally, it prides itself on its robust corporate governance structure.
In closing, Kuwait Finance House’s continuous commitment to Islamic banking principles whilst integrating modern technology explains its leading position within the industry.
Maybank Islamic
Established in 2008 as a wholly-owned subsidiary of Malayan Banking Berhad (Maybank), it has since grown exponentially to become the largest Islamic bank in ASEAN by assets.
Offering a comprehensive range of Shariah-compliant products and services that cater to both retail and corporate customers, it has contributed significantly to the development and growth of Islamic finance industry in Malaysia.
Dedicated to fostering innovation and enhancing accessibility, its commitment is reflected through initiatives such as the digitization of banking services.
Furthermore, Maybank Islamic has consistently received recognition for its efforts towards expanding and strengthening the presence of Islamic banking on both domestic and international stages.
MBSB Bank
Transitioning to the next entity, MBSB Bank is an institution that has made significant strides in the financial sector, particularly through its focus on providing a comprehensive range of services and products. This bank has continuously improved its offerings and streamlining processes to ensure customer satisfaction.
One noteworthy accomplishment of MBSB Bank includes obtaining an Islamic Banking license from Bank Negara Malaysia, thus making it one of the recognized Islamic banks in the country.
The bank’s product portfolio comprises diverse elements such as personal financing, home loans, business banking solutions, and investment services.
Being customer-centric, MBSB Bank also places heavy emphasis on digital banking platforms for ease of transactions and better accessibility for clients across various demographics.
Through these endeavors, MBSB Bank articulates its commitment towards enhancing Malaysia’s financial landscape while adhering to Islamic principles.
OCBC Al-Amin
OCBC Al-Amin, an entity that has emerged as a leader in the financial sector, offers a broad spectrum of services and products while adhering to Shariah principles. This institution is recognized for its commitment to ethical banking practices that respect both Islamic law and global financial standards. The bank provides personal financing, home financing, investment-linked funds, and numerous other facilities catering to diverse needs.
| Services | Description |
|---|---|
| Personal Financing | Offers competitive rates on personal loans |
| Home Financing | Provides various types of home loan options |
| Investment-Linked Funds | Serves customers with diverse portfolio strategies |
| Other Facilities | Includes wealth management, insurance plans |
Striving for excellence in customer service and product innovation has positioned OCBC Al-Amin among the prestigious banks in Malaysia’s Islamic banking industry.
Public Islamic Bank
Public Islamic Bank, another key player in the financial sector, offers a diverse range of Shariah-compliant products and services that cater to various customer needs. These offerings have positioned Public Islamic Bank as an institution of choice within the market.
- Personal financing: The bank offers personal loans under the principles of Tawarruq, facilitating customers’ financial needs without infringing on religious beliefs.
- Deposit accounts: It provides investment opportunities through savings and current accounts complying with Mudarabah contract principles.
- Financing for businesses: Through Ijarah Muntahia Bi-Tamlik contracts, it grants business entities access to capital while adhering strictly to Islamic laws.
These services underscore its commitment towards promoting ethical finance in line with Shariah principles.
RHB Islamic Bank
RHB’s Shariah-compliant subsidiary provides a broad portfolio of financial products and services that fulfill the requirements of diverse customer segments, thus gaining prominence in the ethical finance sector.
RHB Islamic Bank Berhad is recognised as one of Malaysia’s leading Islamic banks, offering comprehensive solutions encompassing corporate banking, treasury, consumer banking, and business banking. The bank endeavours to meet the financial needs of its clients with an array of innovative Shariah-compliant products and excellent customer service.
In addition to this commitment to quality and innovation, RHB Islamic Bank Berhad also adheres strictly to the principles set forth by the Shariah Supervisory Council. This unwavering adherence ensures integrity in all transactions and contributes significantly towards maintaining trust among its clientele.
Standard Chartered Saadiq
Standard Chartered Saadiq Malaysia is a division of Standard Chartered Bank that offers Islamic banking and finance services in Malaysia. The services fully comply with Sharia law, which forbids making money from money, such as charging interest.
Standard Chartered Saadiq Malaysia provides various services, including retail banking, corporate banking, investment banking, and treasury services. It offers home financing, personal financing, savings accounts, current accounts, and investment products.