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Islamic bankingsawrapid growth during the last two decades. There are many contributoryfactors for such growth, most notable of which are the financial liberalization. The prohibitionof interest payments by Islamic Sharia has instead made equity and profit sharing thecornerstones of its operational structure activities. Furthermore, the risk-sharing principleprovides theoretically better long-term allocation of fundsforinvestments with higher risk-return profiles and subsequently greater economic growth. The purpose of this research is toprovide empirical evidence concerning the impacts of liberalization Financial and the Islamicbank performance on economic growth. The studyindicatesthateffects arepositiveandsignificantoneconomic growth during the period 2001-2012in term of financialliberalization.
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