Legal and Regulatory Strategies of Islamic Banking System in Malaysia: A Reflection for Nigeria
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Keywords

Islamic Banking
Legal, Regulatory
Strategies
Malaysia
Nigeria

How to Cite

Akilu Aliyu Shinkafi, Sani Yahaya, & Ahmad Muhammad Gusau. (2020). Legal and Regulatory Strategies of Islamic Banking System in Malaysia: A Reflection for Nigeria. Journal of Economic Info, 7(1), 40-55. https://doi.org/10.31580/jei.v7i1.1350

Abstract

Effective strategies on the legal and regulative framework of Islamic banks are very critical to the endurance of the Islamic banking sector. In fact, legal place and regulatory structure of every industry determine the healthy standing of its stability, sustainability, and success. The major objective of this study is to explore the legal and regulatory strategies of the Islamic banking system in Malaysia and proffer it as a reflection for Nigeria. The study is qualitative in nature, it employed two instruments (document technique and interview instrument) for the data collection. Thematic and descriptive analysis were used where themes and sub-themes were depicted as they emerged from the data. The outcome of the study reveals that Malaysia has strengthened its legal strategies by promulgating several acts, legal reforms, provisions, and promulgation of certain acts of law, amendments of laws, passing bills, and enactment of new laws such as IBA, IFSA, ICMA, CBMA, GIA, GFA, Mu’amalat bench, and etcetra with the view to ensure the free hit of the legal hiccups, best practices, effective corporate governance, and proper risk management in the financial industry. The outcome of the study further show that BNM has significant influence in the regulations, supervision, and control of IBs. These roles include the formation of SAC and Shari’ah committees for IBs; establishment of Islamic financial service board IFSB, spelling effective Shari’ah governance framework SGF; services, and compliance to Shari’ah regulatory standards, and creating talents such as ISRA, INCEIF, and several others.

https://doi.org/10.31580/jei.v7i1.1350
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