1 / 22

Agus Triyanta Faculty of Law, Universitas Islam Indonesia

B OOSTING SUSTAINABLE DEVELOPMENT OF ISLAMIC BANKING (A Comparative Overview Towards Malaysia, Indonesia And Singapore From Legal Perspective ). Agus Triyanta Faculty of Law, Universitas Islam Indonesia triyantaagus@yahoo.com & agustiyanta@uii.ac.id.

shika
Download Presentation

Agus Triyanta Faculty of Law, Universitas Islam Indonesia

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. BOOSTING SUSTAINABLE DEVELOPMENT OF ISLAMIC BANKING(A Comparative Overview Towards Malaysia, Indonesia And Singapore From Legal Perspective) AgusTriyanta Faculty of Law, Universitas Islam Indonesia triyantaagus@yahoo.com & agustiyanta@uii.ac.id

  2. Islamic Banking: a Global Phenomenon • Tremendous development of the industry of Islamic Banking (IB) & Finance. • Islamic banking currently operates in more than 75 countries, not only in Muslim countries but spread over Europe, America and the Far East. • today Islamic finance is estimated to manage funds for US$1.8 trillion in 2013 worldwide. • This could be substantially higher. aggregating the retail and wholesale sectors. agustriyanta2013

  3. Achievements Three Biggest Home for Islamic Finance: • Saudi Arabia: with asset amounted US$ 207 billion. • Malaysia: with asset amounted US$ 106 billion. • Uni Arab Emirate: with asset amounted US$ 75 billion. (Enrst & Young-2013) agustriyanta2013

  4. Current Development agustriyanta2013

  5. Current Development agustriyanta2013

  6. Current Development agustriyanta2013

  7. Malaysia • The first bank: The Chartered Merchant Bank of India, London and China in 1859 • After Independence (1957), Bank Negara Malaysia (BNM) was established in1959 • Only by the end of 1970, domestic banks reached equal position with the foreign ones • In 1983, first Islamic Bank, Bank Islam Malaysia Berhad (BIMB) was incorporated, in coincidence with the worsening trend of the financial industry in Malaysia. agustriyanta2013

  8. Legal Framework of Islamic Banking in Malaysia agustriyanta2013

  9. Indonesia • DeJavasche Bank established by Dutch colonial in 1827. • Independence in 1945. In 1946, Bank Negara Indonesia then was established as a central bank of Indonesia. In 1949, de Javasche Bank became central bank. • 1992: First Islamic Bank; Bank Muamalat Indonesia (BMI). • 1998: Economic crisis gave impetus for the rise of IB. agustriyanta2013

  10. Legal Framework of Islamic Banking in Indonesia agustriyanta2013

  11. Legal Framework of Islamic Banking in Singapore agustriyanta2013

  12. Constitutional Basis | agustriyanta2013

  13. Malaysia’s Legal Respose agustriyanta2013

  14. Indonesia’s Legal Response agustriyanta2013

  15. Singapore’s Legal Response agustriyanta2013

  16. Analysis 1: • Both countries experienced similar economic intervention by colonials, but with different impact in banking development. • In both, the banking crisis has given impetus for the rise of IB. • the emergence of Islamic bank in Malaysia was in 1983, almost a decade earlier compared to the establishment of Islamic bank in Indonesia agustriyanta2013

  17. Analysis 2: • Today, IB business in Malaysia, in terms of asset, reaches 24.2% of the entire banking asset nationally, in Indonesia it is still 4.3%. • legal framework of Islamic banking in Malaysia has been robust since the very beginning, but Indonesia, is still suffering from the lack of legal basis in some aspects. agustriyanta2013

  18. Analisis 3: • The performance, of the both is in the very positive and promising trend, but the support of the respective government are different. • Lastly, apart from the speedy growth of the Islamic banking business in both countries, the issue with regards to the Shariah Compliance is also taking place. agustriyanta2013

  19. Conclusions 1: • Legal adjustment could leverage the public confidence of Islamic banking significantly • Differences in the legal adjustment has clearly affected to the growth and development of Islamic banking. • Malaysia, has shown its steady rapid progress compared to their two counterparts in the region. agustriyanta2013

  20. Conclusions 2: • Considering the late birth of Islamic banking Singapore, it is clear that what this state achieved is promising. • Whereas Indonesia, the development of the asset achieved by Islamic banking needs more leverage through governmental initiatives, and more importantly higher legal adjustment agustriyanta2013

  21. Recommendations The rest legal matters need to be resolved: • Malaysia: Dispute resolutions. • Indonesia: Harmonisation between Islamic contract within civil law (in case for dispute) • Singapore: Shariah governance aspects agustriyanta2013

  22. Thank You- Wassalamualaikum agustriyanta2013

More Related