AmBank Group

FAQs

About Islamic Bank

About Us

1.What is Islamic banking?
Islamic banking is a total banking system where the "sources and application" of funds are managed separately from the conventional banking system. It is based on Islamic banking principles that are guided by the Syariah council and Bank Negara Malaysia .

Find out more about Islamic banking – “Overview of Islamic banking in Malaysia ”.
2.Is Islamic banking for Muslims only?
No. Islamic banking is open to all, regardless of their religion or race. Islamic banking offers a wide range of financial products and services as an alternative to the current conventional banking system.
3.Are all products and services offered by AmIslamic Bank Syariah compliant?
Yes. AmIslamic Bank has its Syariah committee to consult on Islamic banking operations. In addition, information on all products and services offered by AmIslamic Bank is submitted to Bank Negara Malaysia Islamic Banking Department before it can be made public. The National Syariah Advisory Council appointed by Bank Negara Malaysia assists in evaluating the Syariah aspects of new products and services submitted by all banking institutions.

Find out more about the the National Syariah Advisory Council.

4.What are the differences between Islamic banking and conventional banking?

The differences are as summarized in the table below :

Difference	Islamic banking	Conventional banking
Banking Concept	Profit and loss sharing	Interest-based lending and borrowing
Source of Funds	Investment	Borrowing
Application of Funds	Investment and financing	Lending and investment
Instruments/Nature of Transactions	Only Syariah approved instruments/transactions	Acceptable by the bank
Relationship between customer and the bank	Investor and fund manager	Creditor and debtor

5.What are the differences between an Islamic deposit investment and a conventional fixed deposit?

The differences are as summarized in the table below :

Differences	Islamic deposit investment	Conventional fixed deposit
Account feature	It is an investment account where the return is dependent on the profitability of Islamic banking operations.	It is a fixed deposit account with a fixed interest determined upfront regardless of profitability of conventional banking operations.
Return	The return is based on the pre-agreed profit sharing ratio.	The bank promises a fixed interest rate determined upfront.
Investment of Funds	The funds (deposit investment) will be invested in Syariah approved instruments/ transactions only.	The funds (fixed deposit) will be invested in any investment acceptable to the bank.