Malaysia: Islamic banks and finance
Checked on October 12, 2026
Malaysia set up its first Islamic bank, Bank Islam Malaysia, in 1983 under the Islamic Banking Act, which was replaced in 2013 by the Islamic Financial Services Act (IFSA), which also governs takaful. The central bank (Bank Negara Malaysia, BNM) licenses institutions, and the rulings of its Shariah Advisory Council are binding on banks and takaful operators. The country has standalone Islamic banks such as Bank Islam and Bank Muamalat, as well as Islamic subsidiaries of the large groups (Maybank Islamic, CIMB Islamic, Public Islamic Bank, RHB Islamic Bank and others). In 2022 BNM granted five digital bank licences, two of them to Islamic projects; AEON Bank, the country’s first Islamic digital bank, opened in 2024.
The 7 providers
-
Maybank Islamic Berhad
Islamic bank- Group
- Maybank
- Since
- 2008
- Supervision
- BNM
- Products
- Current account, Card, Savings, Home finance, Car finance, Personal finance, Business, Investments
-
CIMB Islamic Bank Berhad
Islamic bank- Group
- CIMB
- Supervision
- BNM
- Products
- Current account, Card, Savings, Home finance, Car finance, Personal finance, Business, Investments
-
Bank Islam Malaysia Berhad
Islamic bank- Group
- BIMB Holdings
- Since
- 1983
- Supervision
- BNM
- Products
- Current account, Card, Savings, Home finance, Car finance, Personal finance, Business, Investments
-
Public Islamic Bank Berhad
Islamic bank- Group
- Public Bank
- Since
- 2008
- Supervision
- BNM
- Products
- Current account, Card, Savings, Home finance, Car finance, Personal finance, Business, Investments
-
RHB Islamic Bank Berhad
Islamic bank- Group
- RHB
- Since
- 2005
- Supervision
- BNM
- Products
- Current account, Card, Savings, Home finance, Car finance, Personal finance, Business, Investments
-
Bank Muamalat Malaysia Berhad
Islamic bank- Since
- 1999
- Supervision
- BNM
- Products
- Current account, Card, Savings, Home finance, Car finance, Personal finance, Business
-
AEON Bank (M) Berhad
Islamic bank- Group
- AEON
- Since
- 2024
- Supervision
- BNM
- Products
- Current account, Card, Savings, Personal finance
Awarded one of BNM’s five digital bank licences in 2022, AEON Bank opened in 2024 as Malaysia’s first Islamic digital bank.
Before you commit
- Ask for the names of the Shariah board members and their published rulings on the product.
- Check that the provider is authorised by the country’s regulator.
- Compare the total cost, not just the monthly payment: the calculators in this section can help.
- Read the contract: who owns the property, who bears the risk, late-payment charges and where they go.