Value-Based Intermediation: An Analysis from The Perspective of Shariah And Its Objectives
الوساطة المبنية على القيمة: دراسة تحليلية من منظور الشريعة ومقاصدها
Despite considerable growth across the globe, including Malaysia, Islamic banking and finance has witnessed substantial criticism over the lack of social concern in its economic activities, which is one of the most significant elements of the objectives of Shariah. Currently, Bank Negara Malaysia has taken a new initiative by introducing Value-Based Intermediation (VBI). It plays a crucial role in delivering the objectives of Shariah through various strategies. The aim of this paper, hence, is to explore the Shariah principles that have been embedded in VBI. It also aims to discuss the objectives of Shariah in VBI. This paper is qualitative, descriptive, and exploratory. It employs document analysis and library research whereby the data is mainly derived from both primary and secondary sources. This paper is confined to only a conceptual discussion on the implementation of Shari`ah and its objectives in VBI. The findings indicate that there are at least five Shariah principles that have been embedded in VBI. Furthermore, the general Shariah objective of having VBI is to deliver justice, establish values, and enhance social responsibility. However, the specific Shariah objective of VBI is to achieve preservation of wealth through various tools and mechanisms. Finally, this paper contributes to the body of knowledge by giving insights on the implementation of the Shariah and its objectives in VBI, and it could be used as a reference in developing a sound Islamic ethical foundation for future Islamic financial institutions that is lacking in Islamic finance literature.
Keywords: Value-Based Intermediation (VBI), Shariah, Maqasid al-Shari'ah.
How to Cite
The IIUM journal follows the open access policy.
Consent to publish: The Author(s) agree to publish their articles with IIUM Press.
Declaration: The Author(s) declare that the article has not been published before in any form and that it is not concurrently submitted to another publication, and also that it does not infringe on anyone’s copyright. The Author(s) holds the IIUM Press and Editors of the journal harmless against all copyright claims.
Transfer of copyright: The Author(s) hereby agree to transfer the copyright of the article to IIUM Press, which shall have the exclusive and unlimited right to publish the article in any form, including in electronic media. However, the Author(s) will reserve the right to reproduce the article for educational and scientific purposes provided that the written consent of the Publisher is obtained. For the article with more than one author, the corresponding author confirms that he/she is authorized by his/her co-author(s) to grant this transfer of copyright.