Islamic the Islamic banking is not profitable.

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Islamic finance is a financial system which under the Islamic law, called Shariah. In the years 1970,the Malaysia mainly focused on Shariah compatible banking systems, the Islamic financial system has mature to offer a overall financial system, it ranging from banking, capital market to Takaful . Islamic finance system have seem like conventional financial system, but it is not. For example, Islamic law is not allow earn the interest rate from any institution, haram activities, no Riba and etc. The features of Islamic finance system are capital markets, bank , investment and so on. For the Islamic banking had commands 25% share of banking sector in Malaysia.

The Islamic banking is growing speed faster than conventional bank.Islamic banks are challenging to deal with the develop Malaysia banking environment with these changes while still remaining competitive with their conventional counterparts.Furthermore, the industry lacks conformity in products construction and investment practices that adversely affects its credibility, fame, and regulation capabilities. What is Islamic Finance challenges in Malaysia?  The challenges of Islamic finance is misunderstanding the to Islamic finance. A lot of person will think the Islamic finance just for the people who are Muslims. Maybe the people didn’t in-depth understanding the Islamic finance,and the word of Islamic finance having a Islamic, the people will think which for Muslims person. So, the mass media or the personnel who are related to the Islamic finance institution can explain the Islamic finance to person who are misunderstanding. Furthermore, the person will think the Islamic banking is not profitable.

This is because, they misunderstanding the Islamic banking is no interest can charged. But its can use the money for investing, because the bank or company sharing the risk and profit to investor,which is a profit-loss basis. So, Islamic bank should build a better value of information and knowledge for buyer or customer. Lack of uniformity between Shariah’s view. This is because, the different opinion between each school of law complicate the problem as do the different way, and they are not unified the opinion, its will make the people confuse all the things about the Islamic financing. So, the customer or buyer are don’t have the relieved to invest or use the Islamic finance system.  Furthermore, the challenges is the human capital issues. No need considering if have good professional and qualified human in the team or organization to develop and success the goals.

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In this field , the Islamic financing need a own good plan and skill. For example, Shariah comprehension and market insight. The Capital Market Regulators Forum had make a research. Who had asked 82% of talent from Islamic financial services areas such as Shariah and Takaful. But their conclusion is the 60% of talents need to require the more training and skill in the area. So, this is big challenges and impact to Islamic finance. At the expert level of Islamic finance, should have a enough knowledge and skill of talents.


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