1. UKM Learning and Research Repository
2. Master Thesis / Tesis Master
3. Institute of Ethnic Studies / Institut Kajian Etnik (KITA)

Title:	Islamic finance observed: bringing Islamic finance back in society
Authors:	Hideki Kitamura (P86152)
Supervisor:	Shamsul Amri Baharuddin, Dr.
Keywords:	Finance -- Religious aspects -- Islam Finance -- Malaysia Universiti Kebangsaan Malaysia -- Dissertations Dissertations, Academic -- Malaysia
Issue Date:	9-Mar-2020
Description:	This dissertation examines the historical processes through which Islamic finance has developed in Malaysia. Specifically, the dissertation explores: How did the pioneers of Bank Islam Malaysia Berhad, the first Islamic bank in the country, were sought out and how did the background and business philosophy of the pioneers and the sociohistorical background of the 1980s influence the unique Islamic financial practices, which was not observed elsewhere? What is the coherent logic of the state’s policies on Islamic finance? And how local and foreign banks have developed Islamic financial products that characterise Malaysia’s unique practices? Building upon Mark Granovetter’s concept of social embeddedness, I argue that Islamic finance, including its inception and developmental course, is embedded in the Malaysian context and that the finance is an ethno-political tool to create a Malay Muslim community in the financial industry, in which Chinese-Malaysians and foreigners historically predominated. Drawing on 3 years of fieldwork conducted in Malaysia between 2016 and 2019, including in-depth interviews and archival research, I first show that most pioneers came from a conventional banking background, and to fulfill the government’s expectations, they intended to make conventional banking Islamically acceptable rather than simply implementing the profit-and-loss sharing envisaged as ideal by Islamic economists, so they could provide modern banking facilities to economically underrepresented Malay Muslims. Second, I argue that regional differences in practices between Malaysia and the Middle East derive from differences in market environments and not mere differences in Islamic jurisprudence. Third, by focusing on the role of actors’ agency and social interactions, I show that Bay’ al-'Inah, which is often criticised as a backdoor to riba, was initially an exceptional practice but became an orthodoxy through a long-term reproduction process. Lastly, I show that the coherent logic of the protection of Malay interests has determined the course of the Islamic finance industry’s development and that Islamic finance is imbued with ethno-politics in the Malaysian context.,Master of Ethnic Studies
Pages:	121
Call Number:	HG187.M4H537 2020 tesis
Publisher:	UKM, Bangi
Appears in Collections:	Institute of Ethnic Studies / Institut Kajian Etnik (KITA)

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