Malaysia’s Value-based Intermediation banking guidelines welcomed by industry as step forward for Islamic, sustainable finance
KUALA LUMPUR - Bank Negara Malaysia (BNM), the central bank, today unveiled guidance documents for the practical adoption of the Value-based Intermediation (VBI) framework and scorecard for public feedback, which commentators across the responsible finance and Islamic banking community told Salaam Gateway is a step forward towards regulator-backed sustainable finance.
The guidelines, crafted by BNM in partnership with nine Malaysian Islamic banks that make up the so-called VBI Community of Practitioners (CoP), goes beyond financial returns to also measure the positive and sustainable impact of Shariah-compliant banking to the economy, community and environment.
BNM governor Nor Shamsiah Mohd Yunus said in her address at the launch of the guidelines that the adoption of VBI by the industry is to "clearly identify Islamic finance with sustainable practices”.
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Stephanie Augustin