In recent years, Islamic Banking and Finance has become the fastest growing sector in the global finance and banking industry. This industry in Malaysia has witnessed a tremendous growth in terms of demand, acceptance and development since it was first introduced in 1963. At present, Malaysian government has plans to make Malaysia as an International Islamic banking hub in the region by further liberalizing the industry by offering licenses to qualified foreign Islamic banks to operate in Malaysia. This research is principally a study of the survival of the foreign Islamic banks in Malaysia. Although, Islamic banking industry in Malaysia has survived well despite the obstacles and constraints of dual system, they continue to face challenges and foresee better prospects as well. Accordingly the study has focused on the establishment and performance of Saudi-based Al Rajhi Bank in Malaysia. A thorough study is undertaken of the bank and first hand interviews were conducted with all those concerned personnel of Al Rajhi Bank Investment Corporation Berhad and selected individual regulators. The researcher identifies the challenges and the strategies which have been adopted by the bank to further expand its horizon in Malaysia. The challenges that were pertinent to the foreign Islamic banks include the issue of being a strict Sharf'ah player, regulatory concerns, tax issues and the shortage of talented experts in the country. Meanwhile the growth prospects for Islamic banking industry in Malaysia look promising, particularly given the fact that the region is expected to be a major driver of economic growth. This study is concluded with several recommendations to address these challenges for better economic integration and partnership so as to attain the status of a comprehensive bank that integrates and mergers with other Islamic banks in the country.

The banking system plays an important role in economic growth and development through the process of financial intermediation. A well-established banking system is the backbone of an effective economic system. However, the lack of confidence in the banking system, uncertainties and obstacles faced by people in Afghanistan let them to rely mostly on informal banking system such as Hawalah, which is based on trust and reputation. As reported only 3-10 percent of the Afghanistan population have accounts with banks and the rest relying on Hawalah system. Afghanistan with its more than 99 percent of Muslim population is a potential country for Islamic banking. As for now, only 7 private banks are offering selected Islamic products via window. The purpose of this study is to propose a suitable model of Islamic banking institutions for Afghanistan. A combination of qualitative and quantitative research approach was used to get a better understanding of the issues. The qualitative data were collected via interviews while quantitative data through questionnaires. The SPSS software was applied and the data were analyzed in accordance with the research questions. The findings revealed high demand for Islamic banking in Afghanistan and with regards to the hypothesis of this research, the dual banking model of Malaysia was proposed as suitable model for Afghanistan.

The aim of this study is to examine the bank selection criteria being employed by the students in Malaysia. A total of300 undergraduate students of the International Islamic University Malaysia, main campus were selected as a sample for the study. The choice of students of undergraduate level reflects the average age of young customers between 19 to 25 years. My examination relied on 5 selection factors extracted from relevant literature, personal experience and interviews with some bank officials and students. This study is also designed to examine the CLlStomer'!; knowledge in Islamic banking and the factors considered in the selection process of Islamic banks by demographic group and socio-economic characteristics. The data collected from the study is analysed by SPSS Program (version 13), mean factor analysis and then factor analysis to enhance the quality of result by the empirical survey. Previous literature suggests that factors such as banks' strong Islamic reputation as well as better financial return and banking services are to be among the leading factors in the selection criteria of the respective Islamic bank. The main implication of this study is to help marketing executives in the Islamic banks to plan better marketing strategies that would attract new customers as well as retain the existing ones in today's highly competitive environment dominating the financial industry.