KUALA LUMPUR: Bank Negara Malaysia, in collaboration with the Islamic finance industry, has released a strategy paper on Value-based Intermediation (VBI).
In a statement, the central bank said the paper articulates strategies to strengthen the roles and impact of Islamic banking institutions (IBIs) towards a sustainable financial ecosystem.
The strategies promote the application of VBI practices which will lead to an improved suite of products and services offered by IBIs - for better facilitation of entrepreneurship, community well-being, sustainable environment and economic growth, without compromising on shareholders’ returns.
“The intended outcomes of VBI are broadly similar to the objectives set by frameworks such as the environmental, social and corporate governance (ESG), sustainable, responsible, impact Investing (SRI) and ethical finance.
“However, VBI is rooted in Shariah, which determines its underlying values, moral compass and priorities. With the adoption of VBI, practitioners will need to consider the impact of their activities and actions not only to financial consumers, but a wider range of stakeholders,” Bank Negara said, adding that these strategies were expected to be adopted and implemented based on each IBI’s readiness.
The central bank invites constructive feedback from interested parties to further enrich the content of the strategy paper which can be sent be emailed to vbi@bnm.gov.my.
The full strategy paper can be found here: Value-based Intermediation: Strengthening the Roles & Impact of Islamic Finance
Limited time offer:
Just RM5 per month.
