Islamic bank CEO calls for Malaysian regulator to lower financing costs for VBI adopters

Photo: Bank Islam CEO Mohd Muazzam Mohamed, AmBank Islamic CEO Eqhwan Mokhzanee, HSBC Amanah CEO Arsalaan Ahmed, CIMB Islamic CEO Rafe Haneef, and Bank Negara Malaysia deputy governor Abdul Rasheed Ghaffour, on a panel at the Global Islamic Finance Forum (GIFF) on Oct 4, 2018 in Kuala Lumpur, Malaysia. Photo courtesy GIFF 2018

KUALA LUMPUR - Islamic banks adopting the Value-based Intermediation (VBI) guidelines released by Bank Negara Malaysia (BNM) should be given lower financing costs for being so-called “good citizen” banks that focus on the triple social, environmental, and financial bottom line, CIMB Islamic CEO Rafe Haneef told delegates at an industry conference in Kuala Lumpur on October 4.

“If a company is a good citizen in the community that is focusing on the triple bottom line, what will you do about the companies that only focus on the bottom line?” said Haneef.

Adoption of the VBI by Islamic banks in Malaysia is voluntary. Its guidelines go beyond financial returns to also measure the positive and sustainable impact of Shariah-compliant banking to the economy, community and environment.