HISTORY OF ISLAMIC BANKING & FINANCE

Bank Islam began Islamic Interbank Issuance of license to 3

its operation on Money Market foreign banks (AFB, Al- Local
(1/7/1983) established Rajhi &KFH) New Islamic
Bank Islam Financial Services
listed on Kuala BNM established Act (IFSA) passed by
Establishment Lumpur Stock National Shariah the Parliament
of Lembaga Exchange Advisory Council (2012)
Tabung Haji Board for IBT

1963 1980 1983 1991 1993 1997 1999 2003 2007 2010 s 2013 2015

Seminar on Interest Free Malaysia International

Ummah Banking Scheme Islamic Financial
Economic introduced (1993) Centre (MIFC) initiative
Development and later replaced launched
(1980) proposes with Islamic Banking
Malaysia Second full fledged Islamic banking asset
establishment of Scheme
passes Islamic Islamic bank, Bank reached USD72.5 billion
an Islamic bank
Banking Act Muamalat started its with average growth rate
1983 to allow operation of 20% annually
establishment
of Bank Islam

IFSB introduced Capital

Iran introduced Adequacy Standard (on Global
1st Islamic Basel II compliance) for
100% Islamic Establishment of AAOIFI
bank in Egypt
banking system (Bahrain) as the nodal body IFI IFI asset is expected
advising on Shariah, to grow at the rate
Dubai accounting and governance of 15% & exceed
Islamic Bank standards to be followed by USD1 trillion by
established IFI worldwide 2016

1963 1975 1983 1984 1985 1989 1991 2002 2005 2007 2010s 2016

Establishment of Sudan’s Establishment of IFSB Establishment of Islamic

Islamic banking system (Kuala Lumpur) to Liquidity Management
Development Bank becomes 100% enhance stability by (Kuala Lumpur) &
(Jeddah) to expand Islamic issuing standards International Islamic
the Islamic states’ Financial Market (Bahrain)
economy Malaysia Islamic banking Total Islamic assets
approved system in aggregate to
Islamic Sudan became USD300 billion,
Banking Act 100% Islamic growing at the rate
1983 of 10-15% over the
past 10 years