IslamicFinance.de

Standalone Islamic bank versus Islamic window operations is the most prolific debates found in the Islamic finance industry today. The debate is healthy and worthwhile having, if it is done merely to determine how to best meet the various stakeholders’ expectations in a particular jurisdiction. However, it becomes totally time wasting if it is done on the basis of determining which one is more credible or “more Shariah-compliant”. Malaysia is pretty much the only country in the world that has comprehensively legislated and regulated how financial institution may provide Islamic banking products and services. In a jurisdiction, however, that does not have such a structured and established framework, banks must operate within the existing banking framework. Standalone Islamic bank or Islamic window, both are equally good and credible.