Proceedings of the 18th International Academic Conference, London

ISLAMIC ASSET MANAGEMENT IN THE MALAYSIA BANKING INDUSTRY: A PRELIMINARY ASSESSMENT

AZREEN HAMIZA ABDUL AZIZ

Abstract:

This paper aims to explore the preliminary understanding of Islamic asset management in the banking industry. To date, a uniform regulatory and legal framework supportive of Islamic asset management has yet to be developed. This paper explores and provides an understanding on the existing concept of Islamic asset management that has been used in the banking industry today. The discussion on this is divided into three parts that will answer the following three questions: Firstly, what is the meaning of Islamic asset management in the banking industry? Secondly, how do the banks manage all the assets? Thirdly, is the concept of Islamic asset truly based on 'Shari'ah' and guaranteed all the customers on the Islamicity of the products? In accomplishing these objectives, library research is mainly used to obtain the different types of theories and concepts on asset management applied to this paper with content analysis carried out from the findings. The findings of this paper reveal that Islamic asset management that has been used in the banking industry is still hold on to the conventional theory as the foundation.

Keywords: Islamic Asset Management, Banking Industry,

DOI: 10.20472/IAC.2015.018.002

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