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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APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
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EBA has decided to phase out the guidelines on legislative and non-legislative moratoria of loan repayments, in accordance with the earlier specified end of September deadline.
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