, Malaysia
Photo courtesy of Pixabay.

Malaysia proposes revisions to Islamic banking regulations

The central bank is inviting feedback to its exposure draft, until 31 March.

Malaysia’s central bank has published an exposure draft for proposed regulatory changes to its guidelines in Islamic banking.

Bank Negara Malaysia (BNM) is inviting written feedback to the shared draft.

First introduced in 1993, the Islamic Banking Window (IBW) framework allows conventional financial institutions to conduct Islamic banking operations with appropriate legal and regulatory standards to ensure compliance with Shariah. 

The IBW has since contributed to the steady growth of Islamic banking in Malaysia and enabled business opportunities in markets abroad to be explored by Malaysian Islamic financial institutions, the BNM said.

ALSO READ: Malaysian central bank warns against entities impersonating it

“A review of the Guidelines on Skim Perbankan Islam (SPI Guidelines) was undertaken to reflect authorisation, prudential and operational regulatory requirements applicable to domestic and overseas IBWs based on relevant changes in legislative and regulatory requirements,” the central bank stated in the draft. 

“The revisions outlined in this policy document also aims to ensure comprehensive coverage of players including prescribed institutions under the Development Financial Institutions Act 2002 (DFIA),” BNM added.

Feedback for the exposure draft must be submitted electronically to BNM by 31 March 2024 to [email protected]

Follow the link for more news on

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!