Are Islamic banks in Malaysia really ‘Islamic’?

Abstract

Understanding the underlying wisdom of the origin of Muamalat could clear some misconceptions towards Islamic banks in Malaysia. These misconceptions arise when we talk about transformation from conventional bank to Islamic bank. The development process of Islamic banking and the services offered by Islamic banks may be similar to those of conventional banks with some exception that include general banking principles. Therefore this term paper combine both practitioners and academicians thoughts and ideas regarding the Islamic banking and finance operating mechanisms and its possible impacts to clear some common misgivings.Islamic banks, Malaysia, Islamic financial institutions, Misconceptions, Common misgivings