BNM to launch VBI scorecard in October

KUALA LUMPUR: Bank Negara Malaysia (BNM) is expected to launch the value- based intermediation ( VBI) scorecard in October this year, in conjunction with the Global Islamic Finance Forum.

BNM Islamic Banking and Takaful Department director, Mohd Zabidi Md Nor, said the scorecard aims to measure how Islamic financial institutions adopt the VBI initiative by conducting their businesses based on the triple bottom line of people, profit and planet.

He was speaking to reporters on the sidelines of the VBI Fireside Chat organised by Standard Chartered Saadiq Bhd yesterday.

It was reported that the central bank is still developing the scorecard with Islamic Banking players after introducing the VBI initiative in July last year.

Mohd Zabidi said generally, the scorecard comprises both quantitative and qualitative elements that measure the different segments in the Islamic financial sector.

“The scorecard, basically, comprises scores we give according to the nature of their financing,” he added.

It was reported that nine Islamic banking institutions, namely Bank Islam, Bank Muamalat, CIMB Islamic, Agrobank, HSBC Amanah, Maybank Islamic, AmBank Islamic, Alliance Islamic and Standard Chartered Saadiq form the VBI Community of Practitioners (COP).

“The nine Islamic banking players are also involved in the creation of the scorecard to ensure it is practical,” said Mohd Zabidi.

BNM in collaboration with the Islamic finance industry released a strategy paper on the VBI in July last year and aimed at strengthening the role and impact of Islamic banking institutions towards a sustainable financial ecosystem.

The VBI is rooted in syariah, but has similarities with ethical finance such as environmental, social and corporate governance (ESG) and sustainable, responsible, impact investing, (SRI). — Bernama