Date of Award

2010

Thesis Type

Masters

Document Type

Dissertation

Divisions

Academy of Islamic Studies

Department

Department of Shariah, Economics and Governance (formally known as Dept of Syariah & Economics)

Institution

Universiti Malaya

Abstract

Bank Negara Malaysia (BNM) is an institution responsible for implementing monetary policy in Malaysia. In this case, BNM has been playing six major roles in discharging this important responsibility. The roles are to define the main objective of its monetary policy, to build a proper monetary policy framework, to identify a set of suitable monetary policy instruments, to analyze the recent monetary and economic conditions, to regulate the cost and the size of credit and lastly to influence the direction of credit. This research discusses those roles and analyzes them from the view of the Islamic economic perspective in order to identify how far they comply with the principles of Islamic economic. The research’s findings indicate that in general, the BNM roles in implementing the monetary policy are consistent to the Islamic economic norms. However several details on the methods used by the BNM in order to perform the second, the third and the fifth roles are found to be discordant with the principles of the Islamic economic due to the usage of several non Syariah-complaint instruments. Meanwhile the first, the fourth and the sixth BNM roles in implementing the monetary policy are found to be fully in accordance with the demands of the Islamic economic system.

Initial

khm

Additional Information

Dissertation (M.A.) – Academy of Islamic Studies, Universiti Malaya, 2010.

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