Malaysia

Malaysia operates a dual banking system in which conventional and Islamic banks work under parallel legislation. Banking-system assets reached RM4.01tn at end-July 2026, about twice GDP, held by 24 licensed commercial banks, 16 Islamic banks, 10 investment banks, five digital banks and one international Islamic bank. Islamic banks accounted for a third of assets and 43% of loans, a measure that excludes the Islamic windows operated by 16 other institutions. Foreign-owned banks held 18% of assets, and the market is led by the Maybank, CIMB and Public Bank groups.