Transcript Slide 1

ISLAMIC BANKING
PRODUCTS & OPERATIONS
Jeroen P.M.M. Thijs
Chief Risk Officer, Bank Islam Malaysia Berhad
Islamic Finance: Structure and Instruments
26 – 30 September 2011
Ankara, Turkey
STRICTLY PRIVATE & CONFIDENTIAL
KEY OBJECTIVES/ DELIVERABLES
To provide an overview of Islamic banking products and operations
To understand the sources and application of funds of an Islamic bank compared to
conventional bank
To familiarize with the types of products and services available which include the
elements of risk, particularly unique risks pertaining to Islamic banking
To differentiate the products and principles of Islamic banking and conventional banking
To share Malaysian experience with regards to Islamic banking modalities
ISLAMIC DEVELOPMENT BANK
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FUNDAMENTAL
ISLAMIC DEVELOPMENT BANK
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PRODUCT OFFERINGS : CONVENTIONAL VS ISLAMIC
Product Offerings
Conventional
Banking
Islamic
Finance
Savings & Deposit
Product Offerings
Conventional
Banking
Islamic
Finance
Commercial Banking
Current Account
/
/
Term Financing
/
/
Savings Account
/
/
Overdraft/Cash line
/
/
Investment Account
/
/
Revolving Credit
/
/
Time Deposit
/
/
Working Capital
/
/
Factoring/ Discounting
/
/
Consumer Financing
Personal Financing
/
/
Leasing
/
/
Home Financing
/
/
Hire Purchase
/
/
Vehicle Financing
/
/
Trade Finance
Share Financing
/
/
Bank Guarantee
/
/
Shipping Guarantee
/
/
Wealth Management
Structured Deposits
/
/
Bankers Acceptance
/
/
Unit Trust
/
/
Latter of Credit
/
/
Insurance/Takaful
/
/
Multi Trade
/
/
ISLAMIC DEVELOPMENT BANK
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PRODUCT OFFERINGS : CONVENTIONAL VS ISLAMIC
Product Offerings
Conventional
Banking
Islamic
Finance
Investment Banking
Product Offerings
Conventional
Banking
Islamic
Finance
Banking Services
Corporate Advisory
/
/
Debit & Credit Card
/
/
Debt Capital Market
/
/
Internet Banking
/
/
Equity Capital Market
/
/
Mobile Banking
/
/
Private Equity
/
/
SMS Banking
/
/
Infrastructure Financing
/
/
Self Service Terminals
/
/
Corporate Debt
Restructuring
/
/
Phone Banking
/
/
Cash Management
/
/
Bill Payments
/
/
Treasury Services
FX
/
/
PDS
/
/
Money Markets
/
/
Hedging Solutions
/
/
Structured Corp
Deposits
/
/
ISLAMIC DEVELOPMENT BANK
Hajj Services
/
Wakaf Services
/
“… Islamic financial instruments may look like a
mirror picture of conventional ones, however ,
its underlying features, contractual relationships,
mechanisms and implications are not identical.”
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KEY DIFFERENCES – CONVENTIONAL VS ISLAMIC
CONVENTIONAL
ISLAMIC
Sources & Application of Funds
Primarily based on interest rate
Interest is prohibited. Promote profit sharing
transaction.
Focus on financial activities, risk-return
relationship
Facilitate socio ethical, economic and financial
activities. Prohibits excessive leveraging. Money is
not a commodity.
Debt based financing
Both, debt and equity based financing
Predominantly loans contract
Single and multiple business or trade contract
based un underlying Shariah principles.
Lender & Borrower relationship
Buyer and Seller, Capital Owner & Entrepreneur,
Partnership.
Pure profit orientation
Against speculative activities. Linking financing to
productivity.
Guaranteed return on capital/deposit
Islamic banks are not able to guarantee return on
capital and profit.
ISLAMIC DEVELOPMENT BANK
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MAJOR SOURCES & APPLCATIONS OF FUNDS
Total Liabilities
Current &
Savings
A/C
(Wadiah)
Wakalah
Deposit
Total Assets
General
Investment
A/C
Negotiable
Islamic
Restricted
Investment Deposit
(Mudarabah
Certificates
A/C
Deposit)
, and etc
Financing
Assets
(Debt based
financing,
Equity based
financing,
Leasing)
Treasury
Assets
Inventory
(Sukuk,
(Real Estates,
Islamic PDS, Automobiles,
Inter-bank
etc)
Placement)
Benevolent
Loan (Qard)
Other Assets
Shareholders’ Fund
“… An ideal Islamic financial institution is reflected through its balance sheet structure that is purely based
on profit–and-loss sharing contracts (mudarabah and musharakah) on both assets and liabilities side.”
ISLAMIC DEVELOPMENT BANK
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ISLAMIC BANKING OPERATION IN A NUTSHELL
Sources of funds
Application of funds
Non-mudharabah
deposits
Mudarabah
deposits
Shareholders’
Fund
General
Pool

Specific account I

Distribution of profit
Depositors
Bank
or
Specific account II
Infrastructure
(Branch, IT, Risk, Staff, etc)
Marketing
& Promotion
ISLAMIC DEVELOPMENT BANK
Profit
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
Depositors
TYPES OF ISLAMIC BANKING DEPOSITS
Current & Savings
• Current & Savings deposit permits the customers to deposit and withdraw their money at
anytime and does not require a minimum balance in the deposit account.
• Generally, it is based on Shariah principles of qard, wadi’ah yad dhamanah or mudarabah.
Term Deposit
• Term deposit is a type of arrangement where the customer’s deposits are held at a bank for
a fixed term. These deposits will then be invested in business activities which are in
accordance with Shariah.
• Term deposits are commonly structured based on the commodity murabahah, wakalah
unrestricted investment and mudarabah general investment.
Investment
Deposit
• Usually known as a profit-and-loss sharing account.
• The main point of departure between the investment deposit and both savings and current
deposit is that the former is normally structured based on either the mudarabah or
wakalah bi istithmar principles which do not entail a guarantee or neither principal or
return of profit. Nevertheless, it allows holders to earn more attractive returns and
although there is also a likelihood of having to bear the risk of capital losses.
ISLAMIC DEVELOPMENT BANK
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ISLAMIC DEPOSIT VS CONVENTIONAL DEPOSIT
Current & Savings
• Conventional deposits are interest driven but Islamic is based on safe custody with the
bank’s discretion to reward the depositor through hibah (gift) as long as it is not pre-agreed
and stipulated in contract.
•Wadi’ah yad amanah is a trust contract where trustee will be authorized to keep the funds of
the depositors in his or her safe custody by explicit or implicit term. There is a paradigm shift
from trust contract to a guaranteed wadi’ah contract.
• The principal amount is fully guaranteed (except for mudarabah deposit). For conventional,
both principal and interest are pre-determined and guaranteed.
•For Islamic , the deposit is accepted on the condition that the money will be put to work
together with the management expertise and skills of the bank whilst conventional deposit is
a form of debt given to the bank by the customer.
Term Deposit
• Under the conventional term deposits practice, rates are fixed upfront and not tied directly
to the financial performance of the bank.
• Contrary, the rate of return has a direct bearing on the determination of profit sharing ratio
between the bank (entrepreneur) and customer (capital provider).
ISLAMIC DEVELOPMENT BANK
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PROFIT SHARING INVESTMENT ACCOUNT
Loss solely borne by depositor/ IAH
Loss
Depositor
3a
Profit distributed based on PSR
1
X:Y
Profit
Deposits RM XX
3b
3
Specified Asset
2
Invests the funds in specific asset
Doted line indicates flow of funds
ISLAMIC DEVELOPMENT BANK
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Generates profit/ incurs loss
NATURE OF PROFIT SHARING INVESTMENT ACCOUNT (PSIA)
 Deposit accepted based on Mudarabah contract
 Two types of PSIA:
 GIA – the funds utilized in unspecific investment (unrestricted investment)
 SIA – the funds utilized in specific investment (restricted investment)
 Characteristic of PSIA:
 Capital amount of PSIA is not guaranteed
 Islamic bank as a fund manager while PSIA depositor as an investor & a risk bearer
 Losses to be borne by IAH/PSIA holder
 Islamic bank only exposed to negligence risk
 PSIA as Risk Absorbent
 SIA depositor absorbs Credit and Market Risk
 GIA depositor does not absorb Credit and Market Risk
ISLAMIC DEVELOPMENT BANK
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USES OF FUNDS
Asset Class
Asset Mix
Consumer
Financing
Financing Assets
Business
Financing
Placements
Treasury Assets
Product Mix
Key Application of Shariah Contracts
Personal Financing
Tawarruq, ‘Inah or Rahn
Home Financing
Bay Bithaman Ajil, Musharakah Mutanaqisah
Vehicle Financing
Al Ijarah Thumma Al Bay, Murabaha for
Purchase Orderer
Credit Cards
‘Inah, Tawarruq or Ujrah
Term Financing
Tawarruq, and ‘Inah
Trade Financing
Murabahah, Musharakah, Bay Al-Dayn,
Wakalah, etc
Revolving Credit
Tawarruq
Leasing Facility
Ijarah Munthahiyah Bittamlik
Cashline (Overdraft-i)
Tawarruq
Central Bank or
Interbank
Wadiah, Mudarabah & Commodity
Murabahah
Held –for-Trading
Available-for-Sale
Mudarabah, Musharakah, Bay Bithaman Ajil
Sukuk, Islamic PDS
and etc
Held-to-Maturity
ISLAMIC DEVELOPMENT BANK
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Ijarah Thumma Al Bay, Ijarah Mawsufah fi
Dhimmah, Wakalah bi Istithmar, Istisna’ and
etc.
SHARIAH CONTRACTS
Sale-based
• Bay Bithaman Ajil
( Deferred
Payment Sale)
• Tawarruq
(Tripartite Sale)
• Inah (Sale with
Immediate
Purchase)
• Istijrar (Supply
Contract)
• Musawamah (Sale
at bargained
price)
• Tawliyah (Sale at
Cost Price)
• Wafa (Sale & buy
back)
• Murabahah lil
Amir bi Shira’
(Murabahah to
Purchase Oderer)
• Wadhi’ah
(Discount Sale)
Sale – Debt
& Currency
• Istisna’
(Manufacture
Sale)
• Salam (Forward
Sale)
• Bay Dayn (Sale
of Debt)
• Sarf (Sale of
Currency)
• Tawriq
(Securitization)
ISLAMIC DEVELOPMENT BANK
Ijarah
Partnership
Bilateral
Unilateral
• Ijarah
Munhtahia
Bittamlik
(Financial
Lease)
• Ijarah
Thumma al
Bai (Leasing
and
subsequently
Purchase)
• Ju’alah
(Commission)
• Ujr (Fee)
• Ijarah
Mawfusah fi
zimmah
(Forward
Lease)
• Mudarabah
(Profit
Sharing)
• Musharakah
(Partnership)
• Musharakah
Mutanaqisah
(Diminishing
Partnership)
• Muzara’ah
(Sharecropping)
• Musaqah
(Agricultural
Contract)
• Wadiah
(Safekeeping)
• Rahn
(Collateral/
Pledge)
• Kafalah
(Guarantee)
• Wakalah
(Agency)
• Muqasah
(Setting Off)
• Hiwalah
(Transfer of
Debt)
• Waqf
(Endowment)
• Ibra’
(Forgoing of
Right)
• Hibah (Gift)
• Wasiah (Will)
• Wa’d
(Promise)
• Tanazul
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ELEMENTS OF SHARIAH CONTRACT – EXECUTION RISK
Form of Contract
Conditions of Offer
& Acceptance
Subject Matter of
the Contract
• Form of contract refers to an expression made by the contracting parties to
declare their inner will to undertake a contract and thereafter be bound by
certain obligation.
• The offer and acceptance must clearly indicate the intended motive of the
contracting parties.
• A contract is not validly concluded if the subject of acceptance contradicts what
has been offered.
• Subject matter of the contract refers to the contracted object upon which legal
rulings and effects of the contracts are manifested.
• The contract should not be effected on a non-existent object or on something
whose existence in the future is impossible.
• The subject matter must be precisely determined and clearly known to the
contracting parties.
• Any form of serious or major ignorance and uncertainty in the subject matter
will render the contract void.
• The delivery of the subject matter must be certain at the time of the conclusion
of the contract.
• The subject matter must fulfill Shariah rulings which in turn entails that it should
be object of intrinsic value and items of considerable value for Muslim, have
some use, legitimately benefitting and can be possessed.
ISLAMIC DEVELOPMENT BANK
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ELEMENTS OF SHARIAH CONTRACT – EXECUTION RISK..cont
Contracting
Parties
• A contract can only be established in its actuality if the contracting party has a
legal capacity that render him competent to offer or accept an offer made in a
contract.
ISLAMIC DEVELOPMENT BANK
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INHERENT RISKS RELATED TO SHARIAH CONTRACT
Murabahah
(Cost Plus)
Musharakah
(Partnership)
• A contract that refers to sale transaction whereby the cost and profit margin (mark-up)
are made known and agreed by all parties involved. The settlement for the transaction
can be either on spot basis or a deferred basis.
• Credit Risk – Customer is unable to pay the monthly settlements of the selling price as
and when it falls due.
• Market Risk – Rate of Return Risk, a long term murabahah with deferred settlement
(fixed) rate is susceptible to market rate hike as the Investment Account Holder may
expect a higher return in line with the market. Negative impact to Economic Value of
Equity in long run under the market rate hike scenario.
• Operational Risk - Must ascertain that the ownership of the asset is properly
transferred to Islamic bank.
• Musharakah is a partnership (joint venture) between the Bank and its client(s)
whereby each party contributes to the capital of the partnership either to establish a
new project or deal, or share in an existing project.
• Credit Risk – Counterparty risk occurs when the partner does not pay or share the
profit.
• Market Risk – For Diminishing Musharakah in real estate, Islamic bank is also exposed
to the particular real estate price proportionate to its share in the Musharakah.
• Operational Risk – Reputational risk when the partnership fails and accruing losses.
ISLAMIC DEVELOPMENT BANK
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INHERENT RISKS RELATED TO SHARIAH CONTRACT
Ijarah
(Leasing)
• A lease contract whereby lessor buys and then leases out an asset required by the
lessee for an agreed rental amount and period in exchange for the benefits resulting
from the use of the asset .
• Operating Ijarah – The Bank (lessor) buys and leases out asset required by the customer
(lessee) for an agreed rental fee. This does not conclude in a transfer of ownership of
the leased assets to the lessee.
• Ijarah Munthahia Bittamleek (IMB)- It differs from normal Ijarah in that such an
arrangement provides a promise by the lessee to acquire the ownership of the asset at
end of a specified period.
• Credit Risk – Customer is unable to service the lease rental as and when it falls due.
Difficult to transfer the lease to third party in the event of recovery action.
• Market Risk – Similar to murabahah contract in respect of rate of return risk due to
asset-liability gap. Islamic bank (lessor) is exposed to the fluctuation in the market
value of the asset for leasing until the lessee take possession. Residual Value Risk –
Islamic bank will bear the potential loss due to the fair value of the asset fall below its
residual value estimated at maturity of lease contract except in the case if IMB where
the leased asset is sold and the asset ownership is transferred to the lessee at maturity
of lease contract.
• Operational Risk – Supply risk, supplier unable to deliver the asset and unable to meet
the specified requirement/quality. Reputational Risk – Occurs when the leased asset is
used for non permissible activity. Asset Impairment Risk occurs when the leased asset
is destroyed (not through misconduct) the Lessor has to provide an alternative asset
and failing to do so the Lessee can terminate the lease without paying rentals for the
remaining duration of the Contract.
ISLAMIC DEVELOPMENT BANK
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INHERENT RISK RELATED TO SHARIAH CONTRACT…cont
• Istisna’ contract refers to agreement to sell to or buy from customer a non-existent
asset which is to be manufactured or constructed or built according to the ultimate
buyer’s specifications and is to be delivered on a specified future date at a
predetermined selling price. The Islamic bank as the seller has the option to
manufacture or build the asset on its own or to engage the services of a party than
the Istisna’ ultimate buyer as supplier or subcontractor, by entering into a Parallel
Istisna’ contract.
Istisna’
(Manufacture
Sale)
• Credit Risk – Settlement Risk, when customer is unable to honor the payment for
deferred installment or progress bill. Completion Risk for Istisna’ with Parallel Istisna’
i.e. when an advance payment been made by the Islamic bank, the subcontractor
may abandon the project.
• Market Risk – Direct Istisna’ – The Islamic bank will expose to price risk of its unbilled
work-in-process inventory until the progress billing is sent to customer. Istisna’ with
Parallel Istisna’ – No price risk provided that there is no provision in the Parallel
Istisna’ contract does not allows variation in selling price.
• Operational Risk – For Istisna’ with Parallel Istisna’ – Delivery Risk where an Islamic
bank may unable to complete the manufacturing of asset as scheduled due to late
delivery of completed asset by the sub-contractor of Parallel Istisna’
ISLAMIC DEVELOPMENT BANK
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INHERENT RISK RELATED TO SHARIAH CONTRACT…cont
• Salam is a purchase of a commodity for deferred delivery in exchange for immediate
payment according to specified conditions.
• Credit Risk – Delivery Risk when the purchased commodity is not delivered as
scheduled by the seller or customer after payment is made.
Salam
(Forward
Sale)
• Market Risk – Every time the purchase price is fixed, Islamic bank is exposed to
commodity price risks if the price fixed is higher than the market price upon disposal
of the commodity. Asset Replacement Risk – Islamic bank has to purchase commodity
from open market (which may be higher than selling price fixed with parallel salam)
in order to meet its delivery obligation under Parallel Salam.
• Operational Risk – Quality Risk – Goods of inferior quality delivered by direct salam
counterparty. Catastrophic Risk – Natural disaster may give rise to the non-receipt of
commodity.
ISLAMIC DEVELOPMENT BANK
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KEY CHALLENGES IN EQUITY-BASED FINANCING IN MALAYSIA
Commercial banks to act as venture capital, hence requires a new set of technical
and risk management capabilities i.e. industry experts and know-how
Market readiness – profit sharing, trade secrets, bank as strategic business partners
(potential conflicting interest).
Balance sheet size, risk appetite and underwriting capabilities
Supervisory and prudential regulatory framework.
Accounting and auditing standards.
ISLAMIC DEVELOPMENT BANK
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ISLAMIC BANKING
OPERATION & MODALITIES
ISLAMIC DEVELOPMENT BANK
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PRE-REQUISITE EXTERNAL INFRASTRUCTURE
Tax
Neutrality
Policy
Removal of
Stamp Duty to
facilitate buy
& sell
transaction
Comprehensive
Legislation
ISLAMIC DEVELOPMENT BANK
Page 23
Islamic Interbank Money
Market
Islamic
Counterparty
PRE-REQUISITE INTERNAL INFRASTRUCTURE
Knowledgeable &
Experience
Personnel
Risk
Management
Policy
Shariah Governance
Framework
•
•
•
•
Credit
Market
Operational
Shariah
Compliance
ISLAMIC DEVELOPMENT BANK
IT Infrastructure
(customized
solutions to
accommodate
Shariah
requirement)
• Core Banking
System
• Risk Mgmt
System
• ALM System,
etc
Page 24
Integrated
Accounting
Policy, System &
Procedures
• Accommodate
profit/loss
sharing
• Rate of Return
Framework
• Equity-based
financing
• Benevolent
Loan
Shariah Contracts,
Products,
Documentation,
Standard
Operating
Procedures
Treasury Capability
& Middle Office
GOVERNANCE STRUCTURE @ BANK ISLAM
ISLAMIC DEVELOPMENT BANK
Page 25
SHARIAH GOVERNANCE FRAMEWORK @ BANK ISLAM
SHARIAH AS OVERARCHING PRINCIPLE IN
BANK ISLAM
SHARIAH
SUPERVISORY COUNCIL (SSC)
• Oversight accountability on Shariah
matters.
BOARD RISK
COMMITTEE
BOARD OF
DIRECTORS
(Overall oversight on
Shariah governance
structure & Shariah
compliance)
AUDIT &
EXAMINATION
COMMITTEE (AEC)
MANAGEMENT
• Ensure execution of business & operations are in accordance with Shariah principles.
• Provide necessary resources, infrastructure, enablers to the SSC.
Shariah Review Function:
Review business operation
on regular basis to ensure
Shariah compliance.
Shariah Risk Management
Control Function:
Identify, measure, monitor,
report & control Shariah
non-compliance risk
ISLAMIC DEVELOPMENT BANK
Shariah Research Function:
(under Product Development)
Conduct in-depth Shariah
research prior to submission
to Shariah Committee.
Page 26
Shariah Audit Function:
Provide independent
assessment & objective
assurance designed to value
add & improve Bank Islam
adherence to Shariah
INTEGRATED OVERSIGHT FRAMEWORK
Feedback from Audit &
Examination Committee
Board of
Directors
Set Risk Appetite & Tolerance Level
Risk Policies & Capital
Allocations
Board Risk Committee
[Present single view of risks and to
ensure adequate policies and control]
Management Risk Control Committees
Monitoring & Reporting
MRCC
ALCO
SCRC
ORCC
RMC
Risk Management Division
Credit Risk Management
Business Division
 Consumer Banking
 Corporate Inv. Banking
 Commercial Banking
 Treasury
Market Risk Management
Operation Division
 Branches
 Cash Management
 Organization &
Methods
ISLAMIC DEVELOPMENT BANK
Operational Risk Mgmt
Business Support Div.
 Credit Administration
 Transaction Services
 Trade Operations
Page 27
Other Div.
 Information Tech.
 Product Dev.
 Human Resource
 Corporate Com, etc
ISLAMIC BANKING JOURNEY – MALAYSIAN EXPERIENCE
Instituting Foundation
• 1970 – 1992 (Establishment of Enabling Infrastructure)
• “Alternative to Conventional Bank”
Institutional Building, Activity Generation & Market Vibrancy
• 1993-2005 (Deepen Islamic Banking, Create Critical Mass &
Liberalization )
• “Greater Access to Islamic Finance”
Strategic Positioning & International Integration
• (2006 onwards)
• “Hub of International Islamic Finance”
ISLAMIC DEVELOPMENT BANK
Page 28
MALAYSIAN ISLAMIC BANKING LANDSCAPE
Mega Islamic
Banks (Paid Up
Capital of US$1 bil)
STAND-ALONE
SUBSIDIARIES OF CONVENTIONAL BANKS
ISLAMIC WINDOWS & DFIs
INTERNATIONAL ISLAMIC BANKS
ISLAMIC DEVELOPMENT BANK
Page 29
ISLAMIC BANKING MODALITY
Standalone Islamic
Bank
• Independent financial
institutions
• Independent
infrastructure (IT, Risk
Management, Human
Talent, etc)
• High cost-to-income ratio
• Offer full range of Islamic
compliant products &
services
• Retail banking,
Wealth/Asset Mgmt/
Corporate Banking,
Advisory & Capital
Markets
• Bank Islam Malaysia Bhd,
Bank Muamalat Bhd, Al
Rahji, Al-Baraka Banking
Group, Kuwait Finance
House, PT Bank Syariah
Muamalat, etc
Subsidiary of
Conventional Bank
Islamic Window
• Specialized set-ups
within conventional
banks
• Different balance sheet
but common operations
/infrastructure
• Dominated by global
players with limited
presents in the country
that they are operating
• Similar offerings to
standalone Islamic
banks
• Generally targeted at
affluent market
segments and
institutional investors
• Private banking,
structured deposits,
and corporate banking
• CitiIslamic, Bank
Simpanan Nasional,
HSBC Amanah, etc
ISLAMIC DEVELOPMENT BANK
• Subsidiary of domestic
conventional banks
• Dedicated governance
structure
• Shared infrastructure
(branch networks, IT, Risk
Management, etc)
• Transfer Pricing - cost
• Minimal staffing
• Low cost-to-income ratio
and high productivity
index.
• Similar offerings to
standalone Islamic banks
• Retail banking, Corporate
Banking, and Capital
Market.
• Offered Wealth/Asset
Mgmt/ Advisory via sister
company, another
subsidiary of conventional
bank.
• Maybank Islamic, CIMB
Islamic, Affin Islamic, etc
Page 30
Specialized
Institutions
• Takaful & Re-Takaful
Players
• Islamic Mortgage
Companies
• Islamic Investment
Fund Management
Companies
• Islamic Trustee
Companies
• Ar Rahnu or Islamic
Pawnbroking
• Islamic REIT Companies
CONVENTIONAL BANKS WITH WINDOW
 … a total segregation of funds management to meet Shariah requirement:






A dedicated Islamic Banking Division
Separate Balance Sheet & Financial Statements
Dedicated minimum capital as Islamic Banking Fund
Separate clearing account with the Central Bank
Separate cheque clearing system
Separate submission of statistical reports in Financial Inst. Statistical System on monthly
basis
 Additional disclosure of Islamic banking portfolio in financial statements
 … leverage on conventional branch network, IT Infrastructure, risk management, human
talents, brand positioning, sales force, and etc.
 … business model based on cost transfer or transfer pricing
ISLAMIC DEVELOPMENT BANK
Page 31
STAND-ALONE VS WINDOW
Source: Boston Consulting
ISLAMIC DEVELOPMENT BANK
Page 32
ُ
‫ش ْك ًرا‬
ً‫َج ِز ْيل‬
‫سلَم‬
َ ‫َوا ْل‬
Disclaimer: This presentation material has been prepared by Bank Islam Malaysia Berhad (the Bank”) for information purposes only
and does not purport to contain all the information that may be required to evaluate the Bank or its financial position. No
representation or warranty, express r implied, is given by or on behalf of the Bank as to the accuracy of the information or opinions
contained in this presentation. The presentation does not constitute or form part of an offer, solicitation or invitation of any offer,
to buy or subscribe for any securities , nor should it or any part of it form the basis of, or be relied in any connection with, any
contract, investment decision or commitment whatsoever. The Bank does not accept any liability whatsoever for any loss howsoever
arising from any use of this presentation or their contents or otherwise arising in connection therewith.
BANK ISLAM MALAYSIA BERHAD
11th Floor, Wisma Bank Islam
Jalan Dungun, Bukit Damansara
50490 Kuala Lumpur
Tel: 603 2088 8222
Jeroen P.M.M. Thijs
Chief Risk Officer
Contact: 603 2088 8027
Email: [email protected]
www.bankislam.com.my
ISLAMIC DEVELOPMENT BANK
Page 33
Hizamuddin Jamalluddin
AGM, Strategic Planning
Contact: 603 2088 8077
Email: [email protected]