Banking & IFS

Although funding conditions in Malaysia are tightening due to prudential considerations and heightened macroeconomic risks, the banking system as a whole remains profitable, liquid and well capitalised. The country’s 27 domestic and foreign banking institutions are amongst the most dynamic in the region, serving clients at home as well as the wider South-east Asia region. An early adopter of sharia-compliant financial systems, Malaysia is now reaping the benefits as it continues to consolidate its global lead in Islamic finance. In the 23 years since commercial banks were allowed to offer Islamic banking products, the sector has emerged as a formidable force in providing funding to the Malaysian economy and beyond, creating additional high value at home and abroad. This chapter contains interviews with Nor Shamsiah Mohd Yunus, Deputy Governor, Bank Negara Malaysia; Mahendra Gursahani, Managing Director and CEO, Standard Chartered Malaysia; and Jaseem Ahmed, Secretary-General, Islamic Financial Services Board.