Leading towards impactful Islamic social finance: Malaysian experience with the value-based intermediation approach

Mahadi, Nur Farhah and Mohd. Zain, Nor Razinah and Engku Ali, Engku Rabiah Adawiah (2019) Leading towards impactful Islamic social finance: Malaysian experience with the value-based intermediation approach. Al-Shajarah: Journal of The International Institute of Islamic Thought and Civilization (ISTAC), Special Issue: Islamic Banking and Finance. pp. 69-87. ISSN 1394-6870

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Abstract

With the introduction of Sustainable Development Goals or SDGs in 2015, the notion of sustainability and impactful services give an inspiration to the dual financial services industries in Malaysia. The approaches that are taken by both of Islamic financial services industry (IFSI) and its counterpart conventional financial services industry (CFSI) are almost similar. However, a distinguished approach is introduced by the Central Bank of Malaysia towards IFSI. While Sharīʻah provides holistic objectives in comparison to SDGs, the approach of value-based intermediation (VBI) opens a new pragmatic dimension for IFSI in providing impactful and beneficial services to the public at large. The end results of VBI are placed to reach the holistic objectives of Sharīʻah and in achieving complete sustainability of IFSI. This paper investigates the approach of VBI and its proposed implementation from Sharīʻah perspective. Depending on qualitative investigation, this paper also explores the practices of Islamic banks in applying VBI through Islamic social finance and its impacts. It is found that VBI facilitates Islamic banks to provide impactful services to their customers and other innovative strategies based on Islamic social finance.

Item Type:	Article (Journal)
Additional Information:	8630/78567
Uncontrolled Keywords:	Maqāsid al-Sharīʻah, value-based intermediation, sustainable development goals, financial intermediary and Islamic social finance.
Subjects:	H Social Sciences > HG Finance > HG1501 Banking H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Nur Farhah Mahadi
Date Deposited:	10 Feb 2020 12:09
Last Modified:	10 Feb 2020 17:04
URI:	http://irep.iium.edu.my/id/eprint/78567

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