Bank Negara Malaysia (BNM) in late 2017, introduced the idea of Value-based Intermediation (VBI) to Islamic banks.  Bank Negara Malaysia (BNM) defines VBI as an intermediation function that aims to deliver the intended outcomes of Shari’ah through practices, conduct and offerings to contribute positively and sustainably to a wider range of stakeholders (environment, community and overall economy) without compromising shareholders’ financial returns and long-term interests.

VBI is indeed a promising concept as it promotes real economic activities resulting in positive economic, social and environmental benefits to a wide range of stakeholders.  What is indeed most pertinent is that the VBI concept aligns with the Maqasid Shariah and the concept is also in tandem with the objectives of secular sustainable finance.

CSR and VBI: The difference

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