JOURNAL.:
Journal of Muamalat and Islamic Finance Research
2006, Vol. 3 No.1, pp.89-118.
Hanudin Amin, Mohd Zulkifli Muhammad, Suddin Lada, Airulamri Amran and Mohamad Rizal Abdul Hamid
Labuan School of International Business and Finance, Universiti Malaysia Sabah
Abstract
This study analyses the Islamic banking system development in BIMP-EAGA countries since 1983. An analytical method of comparative study is employed for Brunei, Indonesia, Malaysia and Indonesia to verify the discrepancy of the countries in terms of Islamic banks. In Brunei, the evidence suggests that Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah is committed to increase the number of Islamic banks since 1990s. The evidence from Indonesia suggests that the development of Islamic banks has showed significant progress due to long term planning by Bank Indonesia (BI) to increase Islamic banks role at national economy. Similarly, the evidence from Malaysia suggests that Islamic banking development involves an active and systematic growth due to the commitment from the government. Unlike in Philippines, Islamic banking system is underperformed due to the passive programs carried by the government unlikely to construct it as a national policy. Positive reforms by creating a number of assistances between countries may possible to minimize those gaps.Keyword(s): Islamic bank, BIMP-EAGA, cooperation
