The role of Islamic financial institutions in the socio-economic development in Malaysia

Abstract

In Malaysia, as in some other Muslim countries, conventional and Islamic financial institutions exist side by side, interacting with one another. The development of Islamic financial institutions in Malaysia has the potential to play a leading role in serving the Muslim Ummah and contribute towards socio-economic development of the country in conformity with Islamic sensibilities. Yet their market share is rather insignificant in comparison with the conventional financial institutions. The paper outlines the structure and functions of both the conventional and Islamic financial structures. -from Author