The Value-based Intermediation Report 2022: Emerging to Engaging marks the third edition in a series that has been integral in tracking the progress and impact of the VBI initiative within the Islamic banking industry in Malaysia. The inaugural report, Intermediating Beyond Profits: Inaugural Islamic Banking Industry Value-based Intermediation (VBI) Preview Report 2017–2020, laid the foundation for understanding the organic journey of Malaysian Islamic banking institutions in implementing the VBI initiative. The second report, Value-based Intermediation Full Report 2021, confronted the unprecedented economic challenges brought forth by the COVID-19 pandemic and featured the role of the VBI industry in alleviating the financial hardship faced by the unserved and underserved communities.
As we unveil the 2022 edition of the VBI reports, we find ourselves at a unique juncture. This third report, building on the insights of its predecessors, offers something even more profound. It provides a trajectory of VBI progress, not just a snapshot of the current state. While challenges persist, exemplified by the continuing rise in global temperatures, this report underscores the pressing need for financial institutions to critically assess their endeavours and align them with a trajectory that can avert potentially catastrophic consequences.
To this end, this year’s report centres its focus on the evolution of Islamic banks from Emerging to Engaging in their VBI journey. We look at their various initiatives and explore the avenues through which these initiatives can be harnessed to maximise their influence on socioeconomic development. We delve deeper into the role of Islamic banking in achieving sustainability, resilience, and ethical financial practices that are critical in shaping a prosperous and sustainable future for Malaysia and the global community.
The findings highlight the transformative impact of Islamic banks’ VBI activities from January to December 2022. It looks at their efforts, their alignment with national agendas, the evolution of impact measurement practices, the acceleration of VBI green financing, and the forward-looking strategies to maintain the VBI momentum within the ever-evolving ecosystem.
The information, data, and findings presented in this report have been primarily derived from surveys conducted by AIBIM and ISRA Research Management Centre, encompassing all AIBIM member banks. While due diligence has been exercised in presenting a comprehensive report on the growth of the VBI initiative, it is essential to note that the findings presented in this report are contingent on the responses obtained from AIBIM member banks.
