Open AccessCalculation of financial intermediation services indirectly measured (FISIM) for Islamic banking activity in Malaysia1
Author(s) -
Khairul Aidah Samah,
Mohd Yazid Kasim,
Mohd Fahmi Mohd Arupin
Publication year - 2020
Publication title -
statistical journal of the iaos
Language(s) - English
Resource type - Journals
eISSN - 1875-9254
pISSN - 1874-7655
DOI - 10.3233/sji-200657
Subject(s) - intermediation , financial intermediary , islamic banking , islam , business , financial system , intermediary , financial services , context (archaeology) , profit (economics) , investment banking , retail banking , finance , accounting , economics , paleontology , philosophy , theology , microeconomics , biology
The Financial intermediation services indirectly measured (FISIM) is a concept used in national accounts to value the activity of banks as intermediaries between depositors and borrowers and widely used in conventional banking. Unlike conventional banking, Islamic banking declared their loans as financing in financial position statement. While interest expense and interest received declared as “profit distributed to depositors” and “income derived from investment”. The terms were compliant by the shariah law in Malaysia and this paper show on how the calculation of FISIM for Islamic banking in the context of the 2008 System of National Accounts. The calculation process is similar to conventional banks methodology, but the difference was only terms of financing instead of loans that have been used in Islamic Banking.