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Philosophy and Fundamentals of Sharī’ah for Islamic Finance
SHA0011

Phase 3 Islamic Subsidiaries

In 2003, Bank Negara Malaysia’s review called for the
setting-up of the ‘Islamic subsidiary’ as the Islamic
windows achieved wide acceptance. The Islamic
subsidiary was formed to give greater strategic focus
and resources as well as higher autonomy and governance
for Islamic banks.

Among the commercial banks that set up distinct
Islamic subsidiaries were:

• Hong Leong Islamic Bank which had its origin
from a division before being incorporated as a
separate entity on 28 March 2005.

• Affin Islamic Bank Berhad (AFFIN ISLAMIC) and
EONCAP Islamic Bank commenced business
operations on 1 April 2006.

• AmIslamic Bank (currently known as AmBank
Islamic) started its operations on 1 May 2006.
The official launching ceremony was held on
18 May 2006.
• On 1 January 2008, Maybank’s Islamic Banking
began to operate under a new subsidiary of
Maybank known as Maybank Islamic Bank Berhad
(MIB).

During the same period, Malaysia adopted legal reforms
to improve the efficiency of the Islamic Banking and
financial system and also remove any impediments to
this reform. High Court judges started to preside over
matters relating to Islamic banking and finance.

At the Bank Negara’s level, Law Review Committee
was set up to review domestic legislation and incorporate
Sharī’ah principles wherever necessary.

Under the amendments to the Central Bank Act, a
Shariah Advisory Council was established at the Central
Bank. The Council has authority in all matters relating
to Islamic banking and finance.