| FAQs on Islamic Banking |
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| This is a banking activity based on Islamic principles, which do not allow the paying and receiving of interest and promotes profit sharing in the conduct of banking business from the Islamic point of view. |
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Is Islamic banking meant for Muslims only? |
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| No. Islamic banking is for all individuals regardless of their religious beliefs. |
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What are the differences between Islamic and conventional banking? |
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| The most important difference between Islamic and conventional banking is the prohibition of interest in Islamic banking. Islamic banking activity is based on the trading principle of buying and selling of assets. For example, in financing of a home purchase, the selling price (including the bank's profit margin) is fixed from the very beginning. |
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Where can I obtain Islamic banking products and services? |
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| You can obtain Islamic banking products and services at any bank that carry the Islamic banking logo shown below: |
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| The list of banks that offers Islamic banking products and services are listed in Bank Negara Malaysia’s website at www.bnm.gov.my |
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Does the operations of the IBS banks fully comply with the requirements of Syariah? |
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| All Islamic banks and IBS banks are required to set up Shariah advisory committees to advise them and to ensure that the operations and activities of the bank comply with Shariah principles. All products and services offered by Islamic banks and IBS banks must be approved by their respective Shariah Committees. |
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Can an IBS bank transfer credit balances of a customer's Islamic account to a conventional account, or vice versa? |
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| Upon a customer's request, an IBS bank may transfer funds from an Islamic account to a conventional account. However, transfer of funds from a conventional account to an Islamic account can only involve the principal amount. No element of interest is allowed to be transferred. |
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What are the avenues available if I am dissatisfied with the services provided by Islamic banks or IBS banks? |
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If you are not satisfied with the services provided by the Islamic banks or IBS banks you may lodge a formal complaint to the management of the respective banks.
For IBS banks, if you are still not satisfied with the reply given by the management of the bank, you may forward the complaint to the Financial Mediation Bureau (FMB), an independent body to address complaints on financial institutions.
The address of FMB is as follows:
The Financial Mediator
The Financial Mediation Bureau
Level 25
Dataran Kewangan Darul Takaful
4,
Jalan Sultan Sulaiman
50000 Kuala Lumpur
For more information on how to make a complaint on a bank, please refer to Making a Banking Complaint. |
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