KUIS Convention Centre

Kolej Universiti Islam Antarabangsa Selangor (KUIS),

Bandar Seri Putra, 43000 Kajang, Selangor Darul Ehsan, MALAYSIA

To date, Islamic financial system, which is a complement to conventional financial system, has become competitive and strong in the overall Malaysian financial system. Supported by strong local economic growth and strong macroeconomic fundamentals, the system has expanded tremendously and become the key to the Islamic banking system in our country. The need for Islamic banking as well as Islamic financial has increased in order to cater for the changes in economic situation due to the current global problem of economic downturn.

In a dual banking system practice, we can see how the system of Islamic financial is run simultaneously with the conventional financial system. This has created interrelationship among the components of the systems which provides conducive and comprehensive environment for the better use of resources and fund especially for productive economic activities.

One of the important components for the Islamic financial system is active inter-bank Islamic monetary market. Through inter-bank mudharabah investment, Islamic banking institutions have generated short term fund based on profit sharing concept.

Islamic banking institutions are run based on strong international standards and best banking practices, just like how conventional banking institutions are managed. In addition, the monitoring of Islamic banking covers the need to separate Islamic banking portfolio from conventional banking portfolio according to the standards set by Shariah. This is done in view of the need to uphold integrity of the system and trust given by consumers to the Islamic banking system.

Robust growth of the Islamic financial system in Malaysia has opened up an opportunity for the system to be brought to the global market. Efforts to bring the system to the international level will definitely make the local Islamic financial system stronger and better. For example, the establishment of Islamic Services Financial Board and International Islamic Capital Market in Kuala Lumpur with the purpose of developing international monitoring standards based on unique characteristics of the Islamic banking institutions as well as risks that they may have will make the Islamic financial system in Malaysia strong and stable.

Realizing the importance of this Islamic financial system to the world, KUIS R&D and Center of Graduate Studies have agreed to jointly organize an international conference on Islamic financial system in order to expose participants to the benefits of Islamic financial system especially in facing current economic instability. The seminar with the theme of "THE ISLAMIC ECONOMICS AND FINANCE THE WAY FORWARD will discuss the effectiveness of the system after its implementation in the respective countries like Malaysia, Turkey and Kazakhstan. The organizer hopes that the results of discussion on Islamic banking system in the conference will give way for other systems to be implemented accordingly based on Islamic practices. It is not impossible to see more Islamic based systems being implemented globally in the future.