5. Financing Economic Growth by Dual Banking in Malaysia: Empirical Evidence

The performances of the commanding height sectors including agriculture, manufacturing, construction, tourism and mining are crucially important for growth. To improve the productivity and competitiveness of these sectors, it is imperative to offer financial options and opportunities. Despite that Malaysia gained its independence recently, the country experienced a fairly satisfactory level of development. The contribution of the financial sector greatly influenced the success of the policies that offered solutions to the structural problems of Malaysia’s economy. For this reason, the Malaysian government has taken steps to improve the CF and IF. The stability of both sectors enables scholars to run a comparative analysis. This study seeks to provide a comparative analysis of growth based on empirical measurements of the impact of loans offered by conventional and Islamic finance.