Bank Negara Malaysia (BNM) had previously issued a number of statutory requirements in making the establishment of Shariah Committee (SC) of a bank mandatory via Islamic Banking Act 1983, Banking & Financial Institution Act 1989, Takaful Act 1984 and Central bank of Malaysia (Amendment) Act...

Traditional financing has been viewed as exploitation of the poor debtor by the rich creditor where an increase to the borrowed amount (riba) is imputed to the loan. The prohibition in Islam is strict, absolute and unambiguous in all forms and intent. Bank interest has been traditionally...