Publication Details
Abstract
This article examines whether Malaysia’s experience with the “dual banking system” can be applied as an institutional, legal and strategic model for integrating Islamic finance into the conventional banking system of Uzbekistan. The study does not envisage replacing conventional banking activity; rather, it assesses the mechanisms through which Islamic banking can operate alongside conventional intermediation within a single financial stability framework. Malaysia’s experience is analysed as a mature case that evolved from the Islamic Banking Act of 1983 into a developed system underpinned by the Islamic Financial Services Act of 2013, a national Shariah Advisory Council, institution-level Shariah governance, Islamic money market infrastructure, a sukuk market and a deep professional ecosystem. Uzbekistan, by contrast, is assessed as a reform-stage economy in which Islamic finance remains institutionally nascent while demand for it and interest in it continue to grow.