Islamic financial institutions
Islamic financial institutions in Malaysia can be divided into traditional and modern. Traditional institutions were set up and supervised by the Islamic religious councils of each state and included bodies responsible for the collection of zakat (poor tax), wakaf (donations) and baitulmall (public trust funds). Modern economic institutions include banks and development foundations. They have been established since the 1980s to cater to the increased demands for Islamic financial management and products. Islamic financial institutions are founded on the fundamental belief that interest-based lending is haram (prohibited).
- Information in the full article includes
- Traditional Islamic financial institutions
- Modern Islamic financial institutions
- Interest-free banking
- Islamic insurance (takaful)
- Other financial services
