Realisation of Maqasid Al-Shariah using Value-Based Intermediation in Islamic Banks: Acceptance or Refusal

Value-based intermediation (VBI) is a strategy proposed by Bank Negara Malaysia (BNM) as an intermediary tool to deliver the maqasid al-shariah (intended outcomes of Shariah) through practices and product offerings in Islamic banks. However, in reality, VBI has not yet been fully accepted by all Isl...

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Published in:Management and Accounting Review
Main Author: Kadir A.H.A.; Alwi S.F.S.; Halim F.A.; Nor N.M.; Fikri A.A.H.S.
Format: Article
Language:English
Published: Universiti Teknologi Mara 2024
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85190451024&partnerID=40&md5=2b9762e63d79f590591735d9cbaf4239
id 2-s2.0-85190451024
spelling 2-s2.0-85190451024
Kadir A.H.A.; Alwi S.F.S.; Halim F.A.; Nor N.M.; Fikri A.A.H.S.
Realisation of Maqasid Al-Shariah using Value-Based Intermediation in Islamic Banks: Acceptance or Refusal
2024
Management and Accounting Review
23
1

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85190451024&partnerID=40&md5=2b9762e63d79f590591735d9cbaf4239
Value-based intermediation (VBI) is a strategy proposed by Bank Negara Malaysia (BNM) as an intermediary tool to deliver the maqasid al-shariah (intended outcomes of Shariah) through practices and product offerings in Islamic banks. However, in reality, VBI has not yet been fully accepted by all Islamic banks in Malaysia even though BNM strongly recommended the implementation. Thus, the objective of this research was to investigate the reason(s) behind the acceptance and refusal of VBI among Islamic Banks in Malaysia. This research used the qualitative research methodology where semi-structured interviews were conducted with the shapers of VBI in Islamic banks or the dedicated officers in corporate social responsibility to gain information on the initiatives. This research showed that the Islamic banks which agree to implement VBI are purely supporting the BNM initiatives. However, the Islamic banks that refused to implement VBI feel that they had adopted a similar concept and strategy as VBI much earlier to achieve maqasid al-shariah. It is recommended that BNM revise and customize VBI in accordance with the Malaysian context and culture for it to be fully accepted by all Islamic banks and be able to avoid any conflicts between the regulator and practitioners. © 2024, Universiti Teknologi Mara. All rights reserved.
Universiti Teknologi Mara
26007975
English
Article

author Kadir A.H.A.; Alwi S.F.S.; Halim F.A.; Nor N.M.; Fikri A.A.H.S.
spellingShingle Kadir A.H.A.; Alwi S.F.S.; Halim F.A.; Nor N.M.; Fikri A.A.H.S.
Realisation of Maqasid Al-Shariah using Value-Based Intermediation in Islamic Banks: Acceptance or Refusal
author_facet Kadir A.H.A.; Alwi S.F.S.; Halim F.A.; Nor N.M.; Fikri A.A.H.S.
author_sort Kadir A.H.A.; Alwi S.F.S.; Halim F.A.; Nor N.M.; Fikri A.A.H.S.
title Realisation of Maqasid Al-Shariah using Value-Based Intermediation in Islamic Banks: Acceptance or Refusal
title_short Realisation of Maqasid Al-Shariah using Value-Based Intermediation in Islamic Banks: Acceptance or Refusal
title_full Realisation of Maqasid Al-Shariah using Value-Based Intermediation in Islamic Banks: Acceptance or Refusal
title_fullStr Realisation of Maqasid Al-Shariah using Value-Based Intermediation in Islamic Banks: Acceptance or Refusal
title_full_unstemmed Realisation of Maqasid Al-Shariah using Value-Based Intermediation in Islamic Banks: Acceptance or Refusal
title_sort Realisation of Maqasid Al-Shariah using Value-Based Intermediation in Islamic Banks: Acceptance or Refusal
publishDate 2024
container_title Management and Accounting Review
container_volume 23
container_issue 1
doi_str_mv
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85190451024&partnerID=40&md5=2b9762e63d79f590591735d9cbaf4239
description Value-based intermediation (VBI) is a strategy proposed by Bank Negara Malaysia (BNM) as an intermediary tool to deliver the maqasid al-shariah (intended outcomes of Shariah) through practices and product offerings in Islamic banks. However, in reality, VBI has not yet been fully accepted by all Islamic banks in Malaysia even though BNM strongly recommended the implementation. Thus, the objective of this research was to investigate the reason(s) behind the acceptance and refusal of VBI among Islamic Banks in Malaysia. This research used the qualitative research methodology where semi-structured interviews were conducted with the shapers of VBI in Islamic banks or the dedicated officers in corporate social responsibility to gain information on the initiatives. This research showed that the Islamic banks which agree to implement VBI are purely supporting the BNM initiatives. However, the Islamic banks that refused to implement VBI feel that they had adopted a similar concept and strategy as VBI much earlier to achieve maqasid al-shariah. It is recommended that BNM revise and customize VBI in accordance with the Malaysian context and culture for it to be fully accepted by all Islamic banks and be able to avoid any conflicts between the regulator and practitioners. © 2024, Universiti Teknologi Mara. All rights reserved.
publisher Universiti Teknologi Mara
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