The first Islamic based bank in Malaysia was the Islamic Bank of Malaysia or also known as Bank Islam Malaysia Berhad. It was registered in 1983. Bank Islam Malaysia Berhad offers similar products and services available in traditional banks, with one exception – they comply with Shariah banking laws with services like e-banking, mobile banking, and compliant card services that also comes under the umbrella of credit and debit cards.
As the first bank to adopt Shariah laws, Bank Islam has laid its foundations in Malaysia and South East Asia region completely in accordance with Islamic banking regulations. Bank Islam has been playing a major key role in promoting the intriguing development of Islamic banking. Furthermore, the bank has also provided a platform for related Islamic banking subsidiaries to expand such a good banking infrastructure throughout the continents. Several Bank Islam branches were set up in Sri Lanka, Indonesia, and Thailand at first. From the start, Bank Islam had a broad spectrum of assisting the basic financial necessities of Muslims in Malaysia. Also, Bank Islam has great financial packages, products and services for non-Muslims as well. This fulfils their official slogan of “Banking-for-All”.
Today, Bank Islam provides more than five customers with a wide range of Shariah compliant banking and financial products and services by offering over 70 innovative and sophisticated Islamic banking products, and services. Mainly acting as a retail bank with over 70% of total financing, Bank Islam list of products and services range from traditional financing, savings, and investment solutions tailored exclusively for individual customers to banking and financial solutions for financial needs of customers that changes quickly in the modern world including micro financing, wealth management, capital market, treasury, and structured products. In 1990, Bank Islam has also acted as the lead arranger for the first Sukuk issuance in the world for the amount of RM125 million by Shell MDS Sdn Bhd.
With successful operations all over the South-Asian pacific region, Bank Islam holds one of the largest Islamic banking networks with more than 145 branches and over 1,000 installed self-service terminals
Over the time, Bank Islam has revolutionized the concept of Islamic Banking and portrayed the better version of it during its professional tenure. The solutions that are brought forth are incomparable, reliable and most significantly the products and services are completely customer oriented. The bank’s pioneer status also allows it to have the image of the purest Islamic Bank that has attracted and will continue attracting a growing and loyal customer base. Bank Islam has also proven that its yearly improvements in services have led them to reach the heights of Islamic finance industry. In fact, Bank Islam is also now being considered as the source of knowledge and reference.
The core vision of Bank Islam is to become the ‘Global leader of Groups in Islamic Banking’. For this, Bank Islam portrays its Malaysian Islamic banking expansion as the gate of establishing Islamic finance for global markets.
The total estimated authorized capital allocated for Bank Islam was RM 500 million and the paid in capital was 79.9 million. Since then, Bank Islam has increased its paid-in and authorized capital revenue to RM 563 million and RM 2 billion respectively to enhance the productivity.
Later on, the Dubai Islamic Investment Group which is a subsidiary of Dubai Group that is acting as a global financial investor for Dubai Holding, announced in 2006 that they have taken 40% of share ownership in Bank Islam.