CONSUMERS' confidence in Islamic banking is not expected to erode despite the announcement of RM700mil pre-tax losses faced by Bank Islam Malaysia Bhd as it is not a unique case in any business operation, said accounting and finance academic Prof Bala Shanmugam.
Bala, who is the Monash University Malaysia's School of Business Chair for these two fields, said instead of eroding confidence, the incident would create greater confidence and boost interest in the industry as a result of transparent and swift action taken to investigate the losses.