Value Based Intermediation: A Comparative Study of Selected Banks
General Material Designation
[Thesis]
First Statement of Responsibility
Mallick, Zohaib Alam
Subsequent Statement of Responsibility
Khan, Tariqullah S.
.PUBLICATION, DISTRIBUTION, ETC
Name of Publisher, Distributor, etc.
Hamad Bin Khalifa University (Qatar)
Date of Publication, Distribution, etc.
2019
GENERAL NOTES
Text of Note
115 p.
DISSERTATION (THESIS) NOTE
Dissertation or thesis details and type of degree
M.S.
Body granting the degree
Hamad Bin Khalifa University (Qatar)
Text preceding or following the note
2019
SUMMARY OR ABSTRACT
Text of Note
Islamic banks ensure Shariah compliance and hence its operation is essentially ethical and responsible by nature. The theory of Islamic banking assigns significant social responsibility roles to Islamic banks. Recent strategic business trends show that from business sustainability perspectives, service to society cannot be ignored. This perception has been developed into value-based intermediation (VBI) framework, especially by the Bank Negara Malaysia. VBI is basically delivering of Shariah-based sound businesses practices that ensure economic sustainability, promote community coherence and environmental balance without negatively impacting financial performance and returns. VBI mainly focuses on four major thrusts namely, entrepreneur mindset, community empowerment, good self-governance, and best business conduct. We undertook a comparative content analysis of three banks comprising of two Islamic banks - Meezan Bank Limited Pakistan and Bank Islam Malaysia and one European ethical bank namely, Triodos Bank. I compared the three banks using the VBI framework of BNM and found that the reporting of these three banks are significantly converging. In line with the Islamic banks' theoretical aspirations, VBI proposes a shift in the practical paradigm of Islamic banking while supporting their growth and efficiency by creating new opportunities for diversified and more responsible business segments. In this manner, also meeting expectations of regulators, governments and the community. Therefore, it appears that gradually all Islamic financial institutions (IFIs) will adopt VBI as a universal common vision. VBI could also be the basis of a shared vision by IFIs and conventional financial institutions. It is recommended that Islamic banks strategic management should be driven by VBI based transformation.