Release Date: 20 Jul 2017
Bank Negara Malaysia (the Bank) in collaboration with the Islamic finance industry today released a Strategy Paper on Value-based Intermediation (VBI). This paper articulates strategies to strengthen the roles and impact of Islamic banking institutions (IBIs) towards a sustainable financial ecosystem.
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.
These strategies are expected to be adopted and implemented based on each IBI’s readiness.
The Bank invites constructive feedback from interested parties to further enrich the content of the Strategy Paper. Please submit written feedback by 31 August 2017 to the following email: [email protected].
The full strategy paper can be found on the following link: