Background of Bank Islam Malaysia Berhad

Only available on StudyMode
  • Download(s) : 759
  • Published : May 8, 2013
Open Document
Text Preview
Background of Bank Islam Malaysia Berhad (BIMB)
Bank Islam, established in 1983, is Malaysia’s maiden Shariah-based institution. Since its inception, it has emerged as the symbol of Islamic banking in Malaysia and its vision to be “A Global Leader in Islamic Banking” illustrates the Bank’s status as the flag bearer of the country’s financial services industry (“the industry”). Bank Islam has been growing from strength to strength as evidenced by its financial performance and paid-up capital, which, in turn, was instrumental in making the growth of its assets. Throughout the year, Bank Islam has been embarking on a number of expansion programmed with its involvement in, among others, notable transaction in Sukuk and Corporate Mandates. Living up to its pioneering spirit, the Bank has continued to provide innovative and enhanced products and services which has resulted in a growing number of customers seeing Islamic banking as a true alternative to conventional banking. This growing list of clienteles in addition to truly groundbreaking and quality banking solutions have been recognized by the global industry which is reflected by the naming of Bank Islam as Malaysia’s fourth strongest bank and occupying the 53rd position on the list of Asia Pacific strongest banks in 2011. Through a vast expanding network of 127 branches and more than 1000 self-service terminals nationwide, Bank Islam parades a comprehensive list of more than 70 innovative and sophisticated Islamic banking products and services, comparable to those offered by its conventional counterparts. From the traditional financing, savings and investment types of products exclusively for individual customers during the early years of establishment, the range of Bank Islam’s Shariah-based financial products, services and business solutions has significantly expanded to cater to the fast-changing financial needs of customers from all categories including those related to micro financing, wealth management, capital market, treasury and structured products. Being the pioneer in the industry, Bank Islam has played a leading role in promoting the expansion of Malaysia’s brand of Islamic finance into other markets, especially in the region. This has helped developed Bank Islam into a well-established and universally recognised brand. As the number of local and global financial services continues to increase, Bank Islam remains keenly aware of the pioneering role it must continue to play. In recognition of its pioneering role, Bank Islam has been awarded the Reader’s Digest Platinum Award for being the Most Trusted Brand for four consecutive years. The Bank’s growing list of accolades now includes the title “Best Islamic Bank in Malaysia 2011” as given by the prestigious Islamic Finance News. With these entrusted beliefs, Bank Islam is on the right path to become “A Global Leader in Islamic Banking” and continues to remain guided by the excellent pioneering work of its predecessors, Malaysia’s ambition to be the international Islamic financial hub, the success of its turnaround effort and the challenge from its competitors.

Strategies adopted in adapting to the changing environment
Intensive strategy
Public Acceptance towards Islamic Banking System
Islamic banking products have been well accepted by Malaysians. This is reflected by the increasing amounts of total deposits and total loans that are based on Islamic principles placed by Muslim and non-Muslim customers. In the case of BIMB for example, at the end of June 1984 (the first year of operation), the total deposits and total loans were RM241 million and RM162 million respectively. At the end of 1994 (the 10th year of its operations), total deposits increased to RM2, 548 million whilst total loans increased to RM977 million. The corresponding figures for the financial year 2004 were RM11, 269 million and RM7,640 respectively. Public support and acceptance towards the Islamic banking system is also high as...
tracking img