Financial Regulation International
Malaysia
Islamic banking in Malaysia
Brian Chia & Farhana Emir. Wong & Partners, Kuala Lumpur. brian.chia@wongpartners.com. farhana.emir@wongpartners.com
Islamic banking is a banking practice that is based on Islamic philosophies and principles, which have been outlined in the
Holy Qur’an and the Sunnah (ie, traditions and practices of the Prophet Muhammad). A main feature of Islamic banking is that
the practice of
riba
or interest is banned, as it perceives money as a medium of exchange and a unit of measurement, as opposed to a commodity
that commands a price for its use.