Six Islamic banks collaborate to develop Waqf fund

KUALA LUMPUR: Six Islamic banks have signed a Strategic Collaboration Agreement to develop the Waqf Fund for economic empowerment, education, health and investment in the quest to stimulate Muslim economy.

The agreement was inked yesterday by Affin Islamic Bank Bhd, Bank Islam Malaysia Bhd, Bank Muamalat Malaysia Bhd, Bank Kerjasama Rakyat Malaysia Bhd, Maybank Islamic Bhd and RHB Islamic Bank Bhd.

Association of Islamic Banking Institutions Malaysia president Datuk Mohd Redza Shah Abdul Wahid said the Islamic banks, with the existing infrastructure, risk and banking expertise would join forces to generate positive and sustainable impact to the economy, community and environment.

Currently, eight State Islamic Religious Council (MAINs) have agreed to participate in this initiative and the Islamic banks together with MAINs will establish a Joint Management Committee to closely monitor the project.

In this strategic partnership, the participating Islamic banks have agreed to allow their banking channels to be used by their customers to contribute to their preferred projects.

“This includes disclosure on requirements and reporting to donors and funders which are comparable to those of other Islamic banking operations,” Mohd Redza said in the statement today.