KUALA LUMPUR: The exit of foreign backed Islamic lender Kuwait Finance House (M) Bhd from the local banking scene does not indicate an oversaturation in the domestic Islamic banking sector, says Malaysia International Islamic Financial Centre Leadership Council chairman Tan Sri Azman Mokhtar.
Azman said looking at both the macro and micro data, the assets in the local Islamic banking system accounted for 45.6% of total banking assets at the end of last year. In fact, this number is expected to surpass 50% in one to two years.
