KUALA LUMPUR, 21 FEBRUARY, 2012: The Association of Islamic Banking Institutions Malaysia (AIBIM) firmly denied the allegation that Islamic banking institutions in the country are reaping excessive profits.

"All Islamic banking institutions in Malaysia operates in accordance with Shariah values, are well regulated and are in compliance with the high standards established by Bank Negara Malaysia (BNM)," AIBIM president, Datuk Mohd Redza Shah, said in a statement today.

Currently, the demand for Islamic banking products are very encouraging as they are competitive and are supported by contractual documents that are transparent, hence elevating the integrity and stability of the Islamic banking system, he said.

"These products are scrutinised and approved by the Shariah Advisory Committee (SAC) members of each bank and endorsed by BNM's Shariah Advisory Council."

Mohd Redza was refuting a news report quoting The Muslim Consumers Association of Malaysia (PPIM), which called for an immediate review of the conditions and terms used in Islamic Banking, which allegedly oppress consumers.

PPIM's chief activist had said that there were claims the principles in Islamic Banking contravened Islam, exposing it to ridicule.

Mohd Redza further elaborated that the SAC members of Islamic banking institutions are individuals with reputable credentials, who are experienced and experts in Shariah and Fiqh Muamalat.

All AIBIM members have also complied with BNM's minimum requirement of five member for its SAC who are meticulously selected and approved by BNM. he said. 

"AIBIM is prepared to review all complaints raised by PPIM and will get the involvement of all its member banks to resolve the issues with assistance from BNM. The interest and fairness to consumers are our priority."

Mohd Redza said he is confident that this issue arose as a result of miscommunication to the consumers.

"Realizing this issue, AIBIM is now actively conducting outreach programs on the basic understanding of Islamic banking to all walks of life and is willing to collaborate with PPIM and other related bodies," he added.


- Bernama