The roots of the first Islamic bank being institutionalized in 1983, in Malaysia can be sourced from when in September 1963 when Perbadanan Wang Simpanan Bakal-Bakal Haji (PWSBH) was set up. PWSBH was set up as an institution for Muslims to save for their pilgrimage to Makkah expenses. In 1969, PWSBH merged with Pejabat Urusan Haji to form Lembaga Urusan dan Tabung Haji (now known as Lembaga Tabung Haji).
In 1993, under the supervision of (PWSBH), commercial banks, merchant banks and finance companies were allowed to offer Islamic banking products and services under the Islamic Banking Scheme (IBS). These institutions however, were required to separate the funds and activities of Islamic banking transactions from that of the conventional banking business so as to not mix the funds of the Islamic bank and those of the conventional banking system.
In June 2005, Dow Jones and Company of New York and RHB Securities of Kuala Lumpur, teamed up to launch a new "Islamic Malaysia Index" — a collection of 45 stocks representing Malaysian companies that comply with a variety of Sharia-based criteria. Three variables (the total debt of an indexed company, its total cash plus interest-bearing securities and its accounts receivables) must each be less than 33% of the trailing 12-month average capitalization, for example. (Source - www.wikipedia.org)
THE BENEFITS ;
1.The impact on people
Understanding the needs, measurements and motivations of other departments. In many organisations this is biggest single benefit in terms of cost savings and the speed up of processes. We have seen many examples of key process times cut from weeks to days or even hours. So in appointing a separate office for the international students’ affairs that not only looks at their welfare but also their formalities and even their problems and academic hurdles. This will in turn reduce stress from the staff. It is difficult to overestimate the impact of employee attitudes on the satisfaction...