Fitch: Islamic financing growth to beat conventional loans

In 2018, the central bank collaborated with the World Bank and DFIs to develop an enhanced performance measurement framework for DFIs

KUALA LUMPUR: Financing growth in Malaysia’s Islamic banking sector is likely to continue to surpass that of conventional loans as banks prioritise offerings of Islamic banking products over conventional ones, says Fitch Ratings.

Nevertheless, Fitch believes it will be a challenge to meet Bank Negara Malaysia’s Islamic financing mix target of 40% by 2020. The financing mix was 32% at end-2018.