Value-Based Intermediation

The Value-Based Intermediation (VBI) introduced by BNM aims to deliver the intended outcomes of Shariah through practices, conduct and offerings that generate positive and sustainable impact to the economy, community and environment, consistent with the shareholders’ sustainable returns and long-term interests.

Although VBI shares resemblances with concepts such as Environmental, Social and Corporate Governance (ESG), Ethical Finance and Sustainable and Responsible Impact Financing (SRI), the main difference is the central position of Shariah in the determination of its values, moral compass and priorities. In an Islamic financial business setting, preservation of wealth goes beyond its literal meaning. Regardless of the business modality adopted by industry players, VBI aims to create a focus on value and impact creation.

VBI advocates a greater focus on delivering the Shariah propositions through financial intermediation activities that will strengthen the roles and impacts of Islamic Banking Institutions. VBI also encourages a more inclusive observation of Shariah, beyond Shariah compliance and stresses the prevention of negative effect in Islamic banking industries.

Value-Based Intermediation (VBI)

Policy/Measure owner

Bank Negara Malaysia

Launch date
July 2017
To re-orient Islamic finance business models towards realizing the objectives of Shariah that generates a positive and sustainable impact on the economy, community and environment through practices, processes, offerings and conduct.
Key targets/focus areas
  • Creating an enabling environment through regulatory guidance
  • Enhancing the quality of transparency to trigger intended stakeholder activism
Key stakeholders

Direct Stakeholders: Shareholders, Depositors & Investment Account holders, Borrowers

Indirect Stakeholders: Government, NGOs, Analyst & Researches, Public

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