Islamic Banking Act 1983
LAWS OF MALAYSIA
Act 276
Islamic Banking Act 1983
Date of Royal Assent Date of publication in the Gazette 9-Mar-1983 10-Mar-1983
An Act to provide for the licensing and regulation of Islamic banking business.
PU(B) 182/1983
[7th April 1983]
ARRANGEMENT OF SECTIONS PART I PRELIMINARY 1. Short title, commencement and application. 2. Interpretation. PART II LICENSING OF ISLAMIC BANKS 3. Islamic banking business to be transacted only by a licensed Islamic bank. 4. Minister may vary or revoke condition of licence. 5. Licence not to be granted in certain cases. 6. (Deleted). 7. Opening of new branches. 8. Islamic bank may establish correspondent banking relationship with bank outside Malaysia. 9. Licence fee. 10. Restriction of the use of certain words in an Islamic bank’s name.
11. Revocation of licence. 12. Effect of revocation of licence. 13. Publication of list of Islamic banks. 13A. Advice of Syariah Advisory Council. PART III FINANCIAL REQUIREMENTS AND DUTIES OF ISLAMIC BANKS 14. Maintenance of capital funds. 15. Maintenance of reserve funds. 16. Percentage of liquid assets. 17. Auditor and auditor’s report 18. Audited balance sheet. 19. Statistics to be furnished. 20. Information on foreign branches. PART IV OWNERSHIP, CONTROL AND MANAGEMENT OF ISLAMIC BANKS 21. Information on change in control of Islamic banks. 22. Sanction for reconstruction, etc., of bank required. 23. Disqualification of directors and employees of banks. PART V RESTRICTIONS ON BUSINESS 24. Restrictions on payment of dividends and grant of advances and loans. 25. Prohibition of loans, etc., to directors, officers and employees. 26. Restriction on grant of loan, advance or credit facility under section 25 (4). 27. Restriction of credit to single customer. 27A. Control of credit limits. 28. Disclosure of interests by directors. 29. Limitation on credit facility for purpose of financing the purchase or holding of shares. 30. Proof of compliance with sections 24, 25, 26, 27 and
Act 276
Islamic Banking Act 1983
Date of Royal Assent Date of publication in the Gazette 9-Mar-1983 10-Mar-1983
An Act to provide for the licensing and regulation of Islamic banking business.
PU(B) 182/1983
[7th April 1983]
ARRANGEMENT OF SECTIONS PART I PRELIMINARY 1. Short title, commencement and application. 2. Interpretation. PART II LICENSING OF ISLAMIC BANKS 3. Islamic banking business to be transacted only by a licensed Islamic bank. 4. Minister may vary or revoke condition of licence. 5. Licence not to be granted in certain cases. 6. (Deleted). 7. Opening of new branches. 8. Islamic bank may establish correspondent banking relationship with bank outside Malaysia. 9. Licence fee. 10. Restriction of the use of certain words in an Islamic bank’s name.
11. Revocation of licence. 12. Effect of revocation of licence. 13. Publication of list of Islamic banks. 13A. Advice of Syariah Advisory Council. PART III FINANCIAL REQUIREMENTS AND DUTIES OF ISLAMIC BANKS 14. Maintenance of capital funds. 15. Maintenance of reserve funds. 16. Percentage of liquid assets. 17. Auditor and auditor’s report 18. Audited balance sheet. 19. Statistics to be furnished. 20. Information on foreign branches. PART IV OWNERSHIP, CONTROL AND MANAGEMENT OF ISLAMIC BANKS 21. Information on change in control of Islamic banks. 22. Sanction for reconstruction, etc., of bank required. 23. Disqualification of directors and employees of banks. PART V RESTRICTIONS ON BUSINESS 24. Restrictions on payment of dividends and grant of advances and loans. 25. Prohibition of loans, etc., to directors, officers and employees. 26. Restriction on grant of loan, advance or credit facility under section 25 (4). 27. Restriction of credit to single customer. 27A. Control of credit limits. 28. Disclosure of interests by directors. 29. Limitation on credit facility for purpose of financing the purchase or holding of shares. 30. Proof of compliance with sections 24, 25, 26, 27 and