BNM is consulting on three guidance documents to facilitate the practical adoption of value-based intermediation (VBI). The guidance documents include Implementation Guide for VBI, VBI Financing and Investment Impact Assessment Framework (VBIAF), and VBI Scorecard. BNM welcomes constructive feedback on the VBIAF and VBI Scorecard documents by November 30, 2018.
The VBI aims to re-orient Islamic finance business models toward realizing the objectives of Shariah that generate positive and sustainable impact to the economy, community, and environment through practices, processes, offerings, and conduct. The Implementation Guide for VBI provides guidance on practical value-based banking practices, as reference to Islamic financial institutions that intend to embark on the VBI initiative. It also outlines the phases of implementation and deliberates on key implementation challenges alongside some pragmatic solutions. The VBIAF facilitates the implementation of an impact-based risk management system for assessing the financing and investment activities of Islamic banking institutions in line with their respective VBI commitment. The VBI Scorecard provides an overview that covers purposes, key components of assessment, and proposed measurement methodology.
Comment Due Date: November 30, 2018 (VBIAF and VBI Scorecard)
Keywords: Asia Pacific, Malaysia, Banking, Value-based Intermediation, Islamic Banking, BNM
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EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).