BNM releases strategy paper on value-based intermediation for Islamic banks

PETALING JAYA: Bank Negara Malaysia (BNM) in collaboration with the Islamic finance industry has released a strategy paper on value-based intermediation (VBI), which is hoped will lead to improved suite of products and services by Islamic banking institutions, sustainable environment and economic growth, without compromising on shareholders' returns.

Interested parties are invited to write in to vbi@bnm.gov.my with constructive feedback by Aug 31, 2017.
The intended outcomes of VBI are broadly similar to the objectives set by frameworks such as the Environmental, Social and Corporate Governance, Sustainable, Responsible, Impact Investing 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 institutions' readiness.
The full strategy paper can be found on the following link : http://www.bnm.gov.my/index.php?ch=57&pg=137&ac=612&bb=file