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Value-based intermediation amid Malaysia’s Islamic banking landscape
As at the end of August 2020, financing by Islamic financial institutions had risen 9.2% to RM655.6 billion (US$157.68billion) (end of August 2019: RM600.3 billion (US$144.38 billion)). Shariah compliant financing as a proportion of the overall banking sector’s loans increased from 35.5% to 37.2% year-on-year. This brings us closer to Bank Negara Malaysia (BNM)’s targeted mix of 40% Islamic financing by the end of 2020. BNM is prepping the domestic financial industry as a catalyst in promoting heightened awareness of environmental, social and governance (ESG) business consciousness.
This article was first published in Islamic Finance news Volume 17 Issue 45 dated the 11th November 2020