The Performance of Banking During 2000-2009: Bank Islam Malaysia Berhad and Conventional Banking in Malaysia
In Malaysia, Islamic banking has made steady progress since the establishment of the first Islamic bank. In terms of performance relative to the banking system, Islamic banking has been on a progressive upward trend, recording an average annual growth of 48.5% in terms of assets over the period 2006-2009.
During the year, the Islamic banking sector continued to register a strong asset growth of 12.8% as at November 2010 to RM256.6 billion whilst deposits and financing increased to RM211.4 billion and RM160.1 billion. The delivery channels have also improved significantly as there are more than 2,200 branches of Islamic banks and Islamic banking Subsidiaries (IBS) banks offering Islamic banking products and services. Islamic banking has also spurred efforts by other non-bank financial intermediaries such as the development financial institutions, savings institutions and housing credit institutions to introduce Islamic schemes and instruments to meet their customer demands.