Kuwaiti and Malaysian Islamic Bank Comparative Appraisal
Kuwait Finance House and Bank Islam Malaysia Comparison
The differences between the Middle East and Malaysian Islamic banks
If we look at financing pattern of the two Banks there is marked difference between them. The model for Kuwaiti is bank is Investment Banking Model where they finance institutions but model for the Malaysian bank is retail banking model where they finance retail investor. The major differences are as below.
• Kuwait Finance House- Kuwait major financing is Murabah but for Bank Islam Malaysia Bai Bithman Ajil.
• There is no financing BBA in KFH because it is not considered shariah compliant in Kuwait.
• Housing Finance is major activity along with term financing and personal financing for Bank Islam Malaysia. KFH Kuwait does not have this Kind of Portfolio.
• KFH Kuwait is less transparent and less diversified in Financing and balance sheet is very opaque.
• Ijara is second mode of Financing for KFH but it is very small for Bank Islam Malaysia.
• KFH Kuwait is much more stringent in following Shariah Norms.
• Bank Islam Malaysia is more people oriented retail financing and small business financing but for KFH Kuwait this is non existent business.
The salient features of the balance sheet of KFH are
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