In response to the issuance of the Strategy Paper on Value-based Intermediation (VBI) by Bank Negara Malaysia (the Bank) on 20 July 2017, the Bank has received written feedback from respondents with diverse background during the consultation period. The respondents include financial institutions, talent institutions, consultants and individuals, both local and international. An engagement session with the industry representatives was also held to discuss the feedback and suggestions in depth. Relevant comments and suggestions received have been incorporated in this finalised strategy paper. The necessary clarification and elaboration on commonly asked questions are also provided in the feedback statement which covers the following key areas:

• Definition of VBI;
• Potential implication of VBI adoption to business modality and risk management;
• Implementation approach of VBI strategies; and
• Streamlining adoption of VBI with existing initiatives.

In essence, the VBI strategy paper articulates strategies to strengthen the roles and impact of Islamic banking institutions (IBIs) towards providing positive and sustainable values to the economy, community and environment. The strategies are envisaged to promote the application of VBI practices which will lead to an improved suite of products and services offered by IBIs. This will result in a better facilitation of entrepreneurship, community well-being, sustainable environment and economic growth, which are consistent with the shareholders’ sustainable returns and long-term interests. These strategies are expected to be adopted and implemented based on each IBI’s readiness.

The full, finalised strategy paper and feedback statement can be found on the following link:

• Value-based Intermediation: Strengthening the Roles & Impact of Islamic Finance
• Value-based Intermediation: Feedback Statement

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