The familiar adage We learn best from our own mistakes is particularly apt for Bank Islam, which in the past 10 years has completed a turnaround that saw it recover from a state of crisis to gain its current status as Malaysia’s Islamic-banking leader. Its transition from multiple mainly credit-related failures to overwhelming successes is an inspiration for struggling banks the world over.
Bank Islam Malaysia
Bank Islam has made a remarkable comeback in the past 10 years, recovering from years of heavy losses to become one of the region’s financial powerhouses. In our interview with the bank’s Deputy CEO Khairul Kamarudin, we discover some of the bank’s avenues to success.
Malaysia has a well-established and recognised competitive advantage in Islamic finance that is continually strengthened by the operational environment of progressive regulation, favourable tax regimes and, most importantly, supportive authorities within the country. Over the last five years, the Islamic banking assets within Malaysia’s banking industry have almost doubled, expanding from RM303 billion (US $93 billion) at the end of December 2009 to RM557 billion (US $171 billion) at the end of December 2013.