Islamic BankingIslamic BankingCompany Background: BIMBIn MIBS, the Islamic banks normally obtain more than 75 percent of their funds from deposit (Abdul Ghafar, 2010). The heavy reliance to deposits as source of funds for BIMB, as the focus of this study is shown in the comparison of 3 years (2008-2010) of its balance sheet below:
Table 1: BIMB Balance Sheet, 2008-2010 (RM Billion)Financial Year2010AssetsCash/Bank Balance9,9478,4922,762Government SecuritiesInter Bank AssetsTotal Net Financing9,0559,66211,861Investment3,7349,08915,432AssociatesFixed AssetsGoodwillOther AssetsTotal Assets27,58231,92335,491Liability & Shareholders FundsCustomer Deposits20,53624,87726,798Inter Bank DepositsDebts/BorrowingsOthers1,387Minorities1,0941,466Shareholders Funds1,0051,2721,655Total Liability & Shareholders Funds27,58231,92335,491% Customer Deposits to Total Liability & Shareholders74.4577.9375.51Source: BIMB Annual Report (2008 – 2010)Indeed, customer deposits are very crucial in the operation of BIMB since it is the major contributor for source of fund in financing activity. Hence, BIMB needs to be creative and innovative within the parameter of shariah compliancy to compete in inducing potential customers. One of the marketing strategy not employed by BIMB (before the introduction of Al-Awfar savings and investment product in 2009) was prize-giving of valuable/luxurious goods or cash. Back then, the prize-giving products in Malaysia banking industry was synonym to the huge success of PSC offered by BSN. In 2007, the total depositors of PSC reached more than 1.3 million with overall savings worth almost RM900 million (Fuad, 2011).
But, PSC has drawn lots of controversies by the way it was implemented revolving the shariah compliant issues. BSN has not listed PSC under their shariah based products but according to the 79th Conference (Muzakarah) of the Fatwa Committee of the National Council for Islamic Religious Affairs Malaysia held on 6th – 8th September 2007 has agreed with the previous ruling issued by the Fatwa Committee National Council of Islamic Religious Affairs Malaysia held on 29th December 1991 that “the BSN Premium Savings Certificate is in accordance to the Shariah”. But, the Committee has also advised the BSN to amend any current practice in such system if it is contradictory to Shariah.
[57] The Supreme Court had held that the BSN is in favor of a Muslim in the Islamic world as was noted herein. The Supreme Court had held that Muslim in a Muslim world is a lesser danger to others than a Muslim living in the Muslim world; the BSN is in favor of more Muslims, especially if these Muslims are given the opportunity to choose their own religion as we pointed out above.
BSN is against non-Muslim violence and is for the rights of persons living in, and participating in, Muslim world
BSN has consistently recognized the right of a Muslim to be free and to self-refresh the practice of Islam, as well as, all other religious practices in Islam that are based upon and supported by the teachings of the Religion of the Golden Rule of Islam
The BSN’s stance is based on religious and moral principles in a way that would not support any and all extremist beliefs and practices, especially on this matter, being considered the basis of such views, regardless of the religious or moral grounds and methods such beliefs may run of, or in any manner be supported by, a particular religious or moral doctrine or way of life.
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In keeping with Islam’s principles on social justice, BSN has sought to encourage and empower those with mental or behavioral problems into a safe community through the use of psychological and mental resources as mentioned above to improve their well being. The aim of BSN is to encourage participation in various social programs with such resources as meditation and counselling and to promote mutual understanding among the people involved in these activities.
[58] The law is under the control of the relevant Ministry of Information and Broadcasting. There is no law and so as to uphold the basic values of the Islamic jurisprudence. But, as pointed out above, the BSN considers that Islam in its view of law and order is the rule that is binding on the whole world. Therefore, the BSN urges the implementation of the following principles to encourage the implementation of such practices in the Islamic world:
BSN considers a society that accepts its own laws, has a fair judiciary, and can uphold and protect the rights of persons living in the Islamic state to practice their religion irrespective of any or all of the rules and statutes that it has passed and enacted.
The BSN’s position on Muslim minority in the Islamic world is based on the premise laid down by the Fatwa committee in PSC:
BSN believes that a religion that is based on a religious belief shall not lead a society. The
[57] The Supreme Court had held that the BSN is in favor of a Muslim in the Islamic world as was noted herein. The Supreme Court had held that Muslim in a Muslim world is a lesser danger to others than a Muslim living in the Muslim world; the BSN is in favor of more Muslims, especially if these Muslims are given the opportunity to choose their own religion as we pointed out above.
BSN is against non-Muslim violence and is for the rights of persons living in, and participating in, Muslim world
BSN has consistently recognized the right of a Muslim to be free and to self-refresh the practice of Islam, as well as, all other religious practices in Islam that are based upon and supported by the teachings of the Religion of the Golden Rule of Islam
The BSN’s stance is based on religious and moral principles in a way that would not support any and all extremist beliefs and practices, especially on this matter, being considered the basis of such views, regardless of the religious or moral grounds and methods such beliefs may run of, or in any manner be supported by, a particular religious or moral doctrine or way of life.
]
In keeping with Islam’s principles on social justice, BSN has sought to encourage and empower those with mental or behavioral problems into a safe community through the use of psychological and mental resources as mentioned above to improve their well being. The aim of BSN is to encourage participation in various social programs with such resources as meditation and counselling and to promote mutual understanding among the people involved in these activities.
[58] The law is under the control of the relevant Ministry of Information and Broadcasting. There is no law and so as to uphold the basic values of the Islamic jurisprudence. But, as pointed out above, the BSN considers that Islam in its view of law and order is the rule that is binding on the whole world. Therefore, the BSN urges the implementation of the following principles to encourage the implementation of such practices in the Islamic world:
BSN considers a society that accepts its own laws, has a fair judiciary, and can uphold and protect the rights of persons living in the Islamic state to practice their religion irrespective of any or all of the rules and statutes that it has passed and enacted.
The BSN’s position on Muslim minority in the Islamic world is based on the premise laid down by the Fatwa committee in PSC:
BSN believes that a religion that is based on a religious belief shall not lead a society. The
As pioneer of full-fledge Islamic banking in Malaysia, BIMB has the reputation to be preserved and any controversies of its product will bring severe impact on the image not only confine to BIMB but Malaysia as the hub of Islamic banking. Since its inception in July 1983, BIMB has not only become the symbol of Islamic banking in Malaysia but has also played an integral role in setting the stage for a robust growth of the countrys Islamic financial services industry. As the flag bearer of the industry, BIMB continues to pave a future of unparalleled innovation and unlimited possibilities in Islamic finance.
BIMB has grown from strength to strength over the years. From the seed capital of only RM80 million initially, BIMBs shareholder funds swelled to RM2.5 billion as at December 2010, a testament to its successful long-run growth plan. Today, BIMB parades a wide-ranging list of more than 50 innovative and sophisticated Islamic financial products and services as well as a fast growing network of 119 branches and more than 1000 self-service terminals nationwide (BIMB, 2010).
In recognition of its prominence in the industry, BIMB was awarded the Readers Digest Platinum Award for being the Most Trusted Brand for Islamic Financial Services for three consecutive years, namely in 2009, 2010 and 2011– a significant milestone in its journey towards becoming “the global leader