Islamic banks outpacing conventional peers


“Islamic banking growth in Malaysia is mainly driven by government policies as well as the ‘Islamic First’ strategy employed by the banks,” Moody's analyst Wong said.

KUALA LUMPUR: The growth of Islamic banks in Malaysia has outpaced its conventional peers, with penetration growing tremendously over the past 10 to 15 years and now accounting for around 40% of the total financing in the country, says Moody’s Investors Service.

Moody’s Financial Institutions Group analyst Wong Chong Jun said the penetration rate stood around 20% around 10 to 15 years ago.

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