Bank Rakyat

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Bank Rakyat is an Islamic cooperative bank which was established on 28 September 1954 under the Cooperative Ordinance of 1948, following the growth of the cooperative movement in Peninsular Malaysia. Previously known as Bank Agong or Apex Bank, this financial institution was the result of a merger with 11 union banks[disambiguation needed]. It was then established as a primary channel to collect funds, and distribute financing to cooperatives. Renamed Bank Kerjasama Malaysia Berhad in 1967, the Bank has since extended its membership to individuals as well.

Subsequent changes to its governing laws has led to the creation of subsidiaries and the expansion of its branch network, to better serve both customers and members. Bank Rakyat assumed its current name on 6 January 1973. Further broadening its scope of activities, it then extended its financial services to non-members, accepting their deposits and providing them with financing services.

From a conventional bank, Bank Rakyat took a giant step in 1993 to become Syariah compliant at four of its branches and subsequently became a full-fledged Islamic cooperative bank by the beginning of 2003, when it successfully converted its 1.1% conventional assets balance to comply with Syariah guidelines.


Bank Rakyat was established on 28 September 1954 under the Cooperative Ordinance 1948 (known as the Cooperative Societies Act 1993). Today, Bank Rakyat is the biggest Islamic cooperative bank in Malaysia with assets totaling RM79.21 billion as at end of 2012.[1]

The transformation in 2002 of the Bank from a conventional banking system to a banking system based on Syariah has enabled the Bank to record encouraging profits year after year. For the financial year ending 31 December 2012, we have recorded a pre-tax and pre-zakat profit of RM2.11 billion.

We continue to expand our product range and customer facilities that are varied and innovative. The products and facilities include consumer banking, commercial financing, savings and investments as well as products of financial planning to satisfy the many demands of a wide spectrum of modern day customers.

Efficient delivery channels continue to be expanded and continuously improved. We continue to maintain a friendly corporate image to place us on a sound footing as Your Choice Bank.

We have received various recognitions as an industry player and as an outstanding cooperative organization in Malaysia as well as internationally.

As an entity under the control of the Ministry of Domestic Trade, Cooperatives and Consumerism, we are committed to support the mission of the Ministry to consolidate the cooperative sector as the mainstay of economic growth of the nation via all the efforts and steps that we have arranged.

To date, we have 145 branches with more than 400 automated teller machines (ATMs) and cash deposit machines (CDM), 10 Rakyat Xcess and 77 Ar-Rahnu X'Change nationwide. Bank Rakyat also operates our call centre, tele-Rakyat that can be reached at 1-300-88-1BANK (12265) and the iRakyat internet banking. We can also be reached via Bank Rakyat, Bank Pilihan Anda Facebook Account, Bank Rakyat Official Twitter Account and Bank Rakyat Youtube Channels


Bank Rakyat was established in September 1954 under the Cooperative Ordinance 1948, following an expansion of the cooperative movement in Peninsular Malaysia.[2]

To facilitate the expansion of the cooperative movement, the co-operatives set up their respective union banks provide financial needs to their members.

On 28 September 1954, 11 of these union banks decided to merge and form Bank Agong (Apex Bank)

In 1967, Bank Kerjasama Malaysia Berhad replaced Bank Agong with its membership opened not only to the cooperatives, but also to individuals. Subsequent changes in the by-laws also resulted in the creation of its subsidiary companies and opening of branches to serve customers as well as members.

On 6 January 1973, the name was changed to Bank Kerjsama Rakyat Malaysia Berhad or better known as Bank Rakyat.

Bank Rakyat is governed by its by laws and Bank Kerjasama Rakyat (M) Berhad Act 1978 (Special Provision 202), which allows Bank Rakyat to provide financing to non-members.

In 1989, Bank Rakyat was placed under the Ministry of Land and Co-operative Development and the Ministry of Finance.

In 1993, the Cooperative Act was reviewed which allows the Bank to operate in Sabah and Sarawak.

On 8 May 1993, Bank Rakyat took a giant step towards becoming a syariah co-operative bank by introducing Islamic banking products at four of its branches.

Bank Rakyat became a full-fledged Islamic cooperative bank in 2002. Hence, with this major decision, Bank Rakyat marked another milestone in history where it became the third bank to offer total Islamic banking products in Malaysia.

On 15 February 2002, Bank Rakyat together with six other financial and development institutions were placed directly under the supervision of Bank Negara Malaysia (Central Bank of Malaysia) under the Development of Financial Institution Act (DFIA).

On 27 March 2004, Bank Rakyat was placed under the supervision of the Ministry of Entrepreneur and Cooperative Development.

On 15 April 2009, after the cabinet restructuring, Bank Rakyat was absorbed under the Ministry of Finance and was later placed under the Ministry of Domestic Trade, Co-operatives and Consumerism.

To date, Bank Rakyat has a total of 145 branches offering Islamic banking facilities to its customers.


  • 2011 – Authorised Share Capital raised to RM3 bilion. The Bank launched Bank Rakyat Debit Card-i which is also known as One Retail Cash Islamic Debit Card or in short, ORCHID Card.[3]
  • 2010 - The bank launched the CO-OP Card to drive the development and unity of the national cooperative members.
  • 2009 - The launch of Bank Rakyat Twin Towers project on Jalan Travers kicked off. The project is estimated to cost RM460 million. The Bank was placed under the Ministry of Domestic Trade, Cooperatives and Consumerism.
  • 2008 - Profit before tax and zakat surpassed the RM1 billion mark for the first time. The Bank launched the Credit Card-i and offered Tabung Haji services to customers at all Bank Rakyat branches, ATMs and CDMs. Memorandum of Understanding with MobilityOne Sdn. Bhd. allows customers to reload their mobile phone pre-paid via ATMs and i-Rakyat. The first livery advertisement on the external body of an AirAsia aircraft further strengthens the Bank's corporate branding. The Bank launched the Bank Rakyat Foundation with the aim of providing financial assistance and consequently improve the education standards of Malaysians, particularly the Bank's members.
  • 2007 - The Bank launched an online banking facility called i-Rakyat to benefit customers.
  • 2006 - The bank launched tele-Rakyat, its call centre. The Bank launched Ar-Rahnu X'change, its first Islamic pawnshop outlet in Sentul, Kuala Lumpur.
  • 2004 - The Bank was placed under the jurisdiction of the Ministry of Entrepreneur and Cooperative Development. The Bank's participation in the Malaysian Electronic Payment System (MEPS) makes Bank Rakyat the first non-commercial bank to part of the system.
  • 2003 - Authorised Share Capital raised to RM2 billion. The Bank launched e-Rakyat, its first Electronic Banking Centre at Jalan Tangsi branch, Kuala Lumpur.
  • 2002 - The Bank operates as a fully Syariah compliant Bank after successfully converted 1.1% of its conventional assets balance to Syariah compliant assets.
  • 2001 - The Bank introduced off premised ATMs as well as its new logo and corporate colour. The Bank settled its loan with the government. The Bank was placed under direct control of Bank Negara Malaysia under the Development Financial Institutions Act 2002.
  • 2000 - The Bank starts its involvement in micro-credit activities.
  • 1999 - Authorised Share Capital raised to RM1 billion. The Bank introduced the Integrated Retail Banking System to strengthen the Bank's competitiveness.
  • 1994 - Authorised Share Capital raised to RM100 million. The Bank becomes the first local bank to have a fully Islamic banking branch in Jertih. An amendment to the Cooperatives Act 1993 which allows cooperatives to operate in Sabah and Sarawak sees the opening of Kota Kinabalu branch Syariah Advisory Council was established to ensure that the banking operations adhere to Islamic teachings, principles and concepts.
  • 1993 - The Bank launched its Syariah Banking System at its branches in Alor Star, Jalan Ipoh, Kota Bharu and Sungai Besar, making it the first local bank to switch course from a conventional banking system to a Syariah compliant system.
  • 1989 - The Bank opened the first mini-branch at Bandar Tun Razak, Kuala Lumpur.
  • 1979 - The Bank relocated the Head Office from Jalan Ipoh to a 22-storey building owned by the Bank at Jalan Tangsi, Kuala Lumpur.
  • 1978 - The Bank Kerjasama Rakyat Malaysia Berhad Act (Special Provision) 1978 was enacted to enable government to oversee and control the management and administration of the Bank. The Act also allows the Bank to give loans to non-members and companies. It further places the Bank under the supervision of the ministry in charge of overseeing the cooperative sector. The government provided the Bank with a loan of RM115 million to turn the Bank around.
  • 1974 - Authorised Share Capital raised to RM50 million. Bangunan Angkasaraya on Jalan Ampang was built by Angkasaraya Development Sdn. Bhd., a modern building that symbolises the Bank's rapid progress and growth.
  • 1973 - The Bank changed its name to Bank Kerjasama Rakyat Malaysia Berhad or Bank Rakyat. The Bank's By-Laws were amended to allow the Bank to venture into other business through its subsidiaries which include United Manufacturers Sdn. Bhd., Asean Chemical Fertilizers Sdn. Bhd., Angkasaraya Development Sdn. Bhd., Aman Properties Sdn. Bhd. and Rakyat Corporation Sdn. Bhd.
  • 1967 - The Bank changed its name to Bank Kerjasama Malaysia Berhad or Bank Kerjasama. Memberships and financing opened to individuals and cooperatives.
  • 1964 - Authorised Share Capital raised from RM2 million to RM20 million. The Bank moved its Head Office to Kuala Lumpur.
  • 1954 - 11 Union Banks merged on 28 September to become Bank Agong Kampong Bekerjasama-sama Persekutuan Tanah Melayu Dengan Tanggongan Berhad or Bank Agong and registered under the Cooperative Ordinance 1948. The Head Office was in Bukit Mertajam.


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