Realisation of maqasid al-shariah using value-based intermediation in Islamic banks: acceptance or refusal / Aizurra Haidah Abdul Kadir ... [et al.]

Abdul Kadir, Aizurra Haidah and Syed Alwi, Sharifah Faigah and Abd Halim, Fateha and Mat Nor, Norzanah and Saiful Fikri, Aula Ahmad Hafidh (2024) Realisation of maqasid al-shariah using value-based intermediation in Islamic banks: acceptance or refusal / Aizurra Haidah Abdul Kadir ... [et al.]. Management & Accounting Review (MAR), 23 (1): 2. pp. 39-56. ISSN 2550-1895

Abstract

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.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Abdul Kadir, Aizurra Haidah
UNSPECIFIED
Syed Alwi, Sharifah Faigah
shfaigah@uitm.edu.my
Abd Halim, Fateha
UNSPECIFIED
Mat Nor, Norzanah
UNSPECIFIED
Saiful Fikri, Aula Ahmad Hafidh
UNSPECIFIED
Subjects: H Social Sciences > HG Finance > Banking
K Law > KBP Islamic law. Sharī'ah. Fiqh
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Management & Accounting Review (MAR)
UiTM Journal Collections: UiTM Journal > Management & Accounting Review (MAR)
ISSN: 2550-1895
Volume: 23
Number: 1
Page Range: pp. 39-56
Keywords: Islamic Banks, Maqasid al-Shariah, Value-Based Intermediation
Date: April 2024
URI: https://ir.uitm.edu.my/id/eprint/93588
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