The enactment of the Islamic Banking Act of 1983 and the establishment of the country’s first Islamic Bank, Bank Islam Malaysia, has been instrumental in the development of Malaysia into the world’s most mature Islamic Finance market.
This maturity has allowed Malaysia to become a leader in the development of standards for Islamic Finance for which its Central Bank known as Bank Negara Malaysia has taken the lead through its Shariah Advisory Council, which is the highest Shariah authority in Islamic finance in Malaysia.
The following standards have been published by the Shariah Advisory Council of Bank Negara Malaysia.
The second edition of Shariah Resolutions in Islamic Finance was published in October 2010 and is a compilation of all the Shariah resolutions made by the Shariah Advisory Council between 1997 and 2009. The following are covered within this publication:
PART 1: SHARIAH CONTRACTS
IJARAH, ISTISNA, MUDARABAH, MUSYARAKAH, QARD, RAHN, TAKAFUL, TAWARRUQ, WADI`AH, WAKALAH, BAI` DAYN, BAI` `INAH
PART 2: SUPPORTING SHARIAH CONCEPTS
HIBA, IBRA, TA`WIDH AND GHARAMAH
PART 3: ISLAMIC FINANCIAL PRODUCTS
FINANCIAL DERIVATIVE INSTRUMENTS, ISLAMIC CREDIT CARD, HYBRID PRODUCTS, SUKUK BASED ON BAI BITHAMAN AJIL (BBA)
PART 4: SHARIAH ISSUES IN ISLAMIC FINANCE
WINDING UP OF ISLAMIC BANKING INSTITUTIONS, ACCOUNTING AND REPORTING STANDARDS IN ISLAMIC FINANCE, OTHER MATTERS
This Shariah Standard on Mudarabah is issued on 22 October 2012 with an effective implementation date is 1 January 2014.
Bank Negara developed the Shariah governance framework for Islamic Finance Institutions (IFIs) with the primary objective of enhancing the role of the board, the Shariah Committee and the management in relation to Shariah matters, including enhancing the relevant key organs having the responsibility to execute the Shariah compliance and research functions aimed at the attainment of a Shariah based operating environment. The Framework is applicable to all IFIs regulated and supervised Bank Negara.