MALAYSIA ISLAMIC MORTGAGE ISLAMIC BANK
In Malaysia, Islamic finance aims to offer a halal financing solution to Malaysian Muslims and non-Muslims who wish in the context of Islamic sharia to acquire through the use of halal financial products Islamic mortgage in Malaysia.
In Malaysia, very early, at a time when Islamic Finance was still as marginal as it was decried, including in the Muslim world, the country gradually adopted legislation and instruments allowing the practice of Islamic banking, commercial or insurance operations. -compatible, on the basis of a sophisticated and very extensive interpretation of the prescriptions indicated in the dogmatic corpus of the faith.
Malaysia, in terms of Islamic Finance even as a country is not the pioneer of ethical finance but it is particularly impressive as its expansion. The country was considered for nearly two decades as the most advanced nation in Halal Finance practice.
Kuala Lumpur is the world's leading issuer of Islamic bonds (sukuk) and a major player in Islamic finance and insurance (takaful). In a global Islamic finance market valued at USD 1,800 billion at the end of 2015, Malaysia (USD 415 billion, 23%) is ahead of Saudi Arabia (USD 412 billion, 22.9%) and Iran (USD 345 billion). 19.1%), holding more than 55% of the Islamic bond market ($ 167bn) and a significant portion (13%) of Islamic financing ($ 174bn) and Islamic insurance (25%, 8%, $ 2 billion USD).
The Malaysian government supports the development of Islamic finance. The foundation stone was laid in 1963 with the creation of the Tabung Haji Fund, designed to help Malaysians save the necessary amount for the pilgrimage to Mecca. Then, in 1983, the Islamic Banking Act authorized the creation of Islamic banks, under the tutelage of the Central Bank (Bank Negara Malaysia, BNM), and the government created Bank Islam Malaysia Behrad (BIMB). The following year, the foundations of an Islamic insurance sector are thrown with the Takaful Act. The growth of the sector accelerates with the creation of an inter-bank Islamic market in 1994 (Interest-free Banking Scheme, IBS), which generates a dualisation of the banking system, shared between a conventional party and an Islamic party.
In Malaysia, several fiscal aids are put in place to support the sector (ex: tax exemption on profits of sukuks or exemption for 10 years of the income of Islamic banks for their activities in foreign currencies). In 2013, the entry into force of the Islamic Financial Service Act, which replaces the previous legal framework, leads Islamic institutions to strengthen the implementation of the Shariah principles in all their operations and products, and to ensure that they acceptability at the global level. Today, 16 Malaysian banking institutions are fully dedicated to Islamic finance. Maybank Islamic, BIMB, Bank Rakkyat, CIMB Isl., Public Bank Isl. and RHB Isl. are among the main ones.
In Malaysia Islamic mortgage is thus possible for purchasing completed property with up to 90% margin of financing and flexible choice to pay monthly rental on fixed or floating rate.
MALAYSIA'S ISLAMIC MORTGAGE LENDERS