1. Islamic financial institutions (IFIs) in Malaysia

According to Kadri (2015), Malaysian Government allows both conventional and Islamic financial system to be practiced side by side and they are licenced under two difference licences issued by Bank Negara Malaysia. Conventional financial system existed prior to independence whereas Islamic banking system only started in 1983 after the Government introduced Islamic Banking Act 1983. In the same year, the first Islamic banking, Bank Islam Malaysia Berhad was incorporated to provide alternative banking system that conceptually follow the teaching of Islam.

The system has developed, evidenced by the introduction of Islamic banking windows by conventional banks in Malaysia in 1990s. Later on in 2000s, the conventional banks either transformed their Islamic banking windows into subsidiary or transformed themselves into Islamic banks.

In terms of operations and reporting, all financial institutions in Malaysia are subject to legal provisions stated in Banking and Financial Institution Act, Companies Act 1965 and accounting standards issued by Malaysian Accounting Standards Board i.e MFRS. A part from that, Islamic banks and financial institutions are also subject to legal provisions enforced by Islamic Banking Act 1983 and Islamic Financial Services Act 2013. Last but not least, Islamic banking and financial institution are required to form a Syariah Advisory Board to give advice and oversee the adherence to Islamic principle in Islamic banking and financial institution operations.

The list of Islamic financial institutions in Malaysia are as follows:

Table 1.1: List of Islamic financial institutions in Malaysia

No.	Name	Established
1.	Bank Islam Malaysia Berhad	1983
2.	Affin Islamic Bank Berhad	2005
3.	Bank Muamalat Malaysia Berhad	1999
4.	Cimb Islamic Bank Berhad	2003
5.	Maybank Islamic Berhad	2008
6.	RHB Islamic Bank Berhad	2005
7.	AmIslamic Bank Berhad	2006
8.	Public Islamic Bank	2008
9.	Hong Leong Islamic Bank Berhad	2005
10.	HSBC Amanah Berhad	2008
11.	Citybank Islamic	2013
12.	Standard Chartered Saadiq Berhad	2008
13.	Alliance Islamic Bank Berhad	2007
15.	Alkhair International Islamic Bank Berhad	2007
15.	OCBC Islamic Bank Berhad	2005
16.	Al Rajhi Banking & Investment Corporation	2006
17.	Kuwait Finance House	2005