Muhammad Ridhwan Ab. AzizKhairil Faizal KhairiMuhibat Ayoni Oladimeji2024-05-272024-05-272014--2308-1365http://ijcar.net/previous-issues/vol-2-no-9-september-2014/https://oarep.usim.edu.my/handle/123456789/3682International Journal of Contemporary Applied Sciences Vol. 1 No. 1 September 2014In order to reduce risks to the soundness of the banking system and enhance banks’ role as active players in the development of the economy, effective prudential supervision is necessary and desirable in an Islamic banking framework as in conventional banking. Therefore, the objective of this paper is to examine the regulatory and prudential supervision framework of Islamic banking system in Malaysia in order to draw lessons for Nigerian Islamic banking system, taking into consideration the Nigerian environment. The paper is both descriptive and exploratory which employs qualitative research methodology with presentation based on documents review. The paper however suggests that comprehensive study of Malaysian Islamic banking system practices is required by Nigerian Islamic banking regulatory authority. The study will have policy implication to the Central Bank of Nigeria (CBN), and will also be a source of reference for academicians, students, practitioners and other countries in formulating the similar concept of Islamic banking system.en-USIslamic banking system,regulatory,prudential supervision,Bank Negara Malaysia (BNM),Central Bank of Nigeria (CBN)Article9310511