QUESTION 2

Malaysia has a long track record of building a successful domestic Islamic financial industry in the last three decades. This has provided the country with a solid foundation as a financial bedrock of stability which enhances the diversity and maturity of the financial system. You are required to

i. Provide a comparison of the differences between the conventional banking system and the Islamic banking system in Malaysia.

ii. Advise the senior management team to decide which form of funding would be suitable for their expansion plans.