COMPARATIVE ANALYSIS OF REGULATION AND SUPERVISION OF ISLAMIC BANKING BETWEEN MALAYSIA AND GAMBIA

Abstract

This paper attempts to provide analyse the regulation and supervision of Islamic bank in
Malaysia and the Gambia. Islamic banking first gained its appearance in Egypt at Mit
Ghamar by Ahmed El Najjar in 1963. As a result this paper aimed to discuss and analyse
on regulation and supervision between Malaysia and the Gambia. Islamic banking has
experience worldwide acceptance by early 2003. During that period, there were at least
255 Islamic banks around the world. It is also evidenced through pass studies that Islamic
banking has developed tremendously within the past decades. However the industry is
still not great as conventional in almost all the operating regions. This implies that there
are still lot to be done in terms of issues facing the industry. It signals that majority of
banking users in all operating areas still have not adopted and it might not have been
aware of the Islamic banking system. Regionally, operations and models in the operation
of Islamic banking are different. As a result, this study will look and analyses issue that
are principally similar and will also look into operational difference that are peculiar to
each nation and way forward. The study basically compares on the development standard,
models issues and challenges on regulation and supervision of Islamic banking between
these two nations. This study uses a qualitative approach. This study discovers that in
Malaysia and Gambia banking institutions have a different Islamic banking system.