How does values-based banking counter unfair terms in consumer contracts and notices in Islamic banks in Malaysia?

How does values-based banking counter unfair terms in consumer contracts and notices in Islamic banks in Malaysia?

In July 2017, Bank Negara Malaysia (BNM) in collaboration with Malaysian Islamic finance industry, released a ‘Strategy Paper on Value-based Intermediation (VBI)’. This paper articulates strategies to promote the application of VBI which aims to improve the products and services offered by Islamic...

Full description

Bibliographic Details
Main Authors: Abu Bakar, Noor Mahinar, Mohd Yasin, Norhashimah, Ng, See Teong
Format: Conference or Workshop Item
Language:English
Published: Faculty of Management & Muamalah, Kolej Universiti Islam Antarabangsa Selangor (KUIS) 2017
Subjects:
HG1501 Banking
HG3368 Islamic Banking and Finance
K Law (General)
Online Access:http://irep.iium.edu.my/56526/
http://irep.iium.edu.my/56526/
http://irep.iium.edu.my/56526/1/56526_How%20Does%20Values-Based%20Banking.pdf
id iium-56526
recordtype eprints
spelling iium-565262018-06-26T07:02:25Z http://irep.iium.edu.my/56526/ How does values-based banking counter unfair terms in consumer contracts and notices in Islamic banks in Malaysia? Abu Bakar, Noor Mahinar Mohd Yasin, Norhashimah Ng, See Teong HG1501 Banking HG3368 Islamic Banking and Finance K Law (General) In July 2017, Bank Negara Malaysia (BNM) in collaboration with Malaysian Islamic finance industry, released a ‘Strategy Paper on Value-based Intermediation (VBI)’. This paper articulates strategies to promote the application of VBI which aims to improve the products and services offered by Islamic banking institutions (IBIs) towards a better facilitation of entrepreneurship, community well-being, sustainable environment and economic growth, without compromising on shareholders’ returns. The VBI is based on SharÊ‘ah, which determines the underlying values, moral compass and priorities in Islamic banks. With the adoption of VBI, IBIs will need to consider the impact of their activities and actions on a wider range of stakeholders, including the financial consumers. The main purpose of this study is to highlight the voice of banking consumers on detriments due to unfair terms in consumer contracts and notices, which is rarely heard by IBIs and BNM. Finding in this study reveals that although BNM has issued a number of standards and guidelines to improve fairness, transparency and governance, but the adoption and enforcement of the standards is highly uneven across the Islamic banks in Malaysia. Using content analysis, this study analyses the impact of values-based banking and governance in solving the problem of unfair contract terms and notices in Islamic banks. Therefore, this paper recommends that IBIs to take the leadership role in advocating values-based banking and governance in ensuring fair treatment, ethical banking and a more socially responsible banking environment to the consumers/community in line with sustainable development goals of SharÊ‘ah. The outcome of this study will be helpful to IBIs in enhancing their branding image and reputation towards facilitating business success over time. Faculty of Management & Muamalah, Kolej Universiti Islam Antarabangsa Selangor (KUIS) 2017 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/56526/1/56526_How%20Does%20Values-Based%20Banking.pdf Abu Bakar, Noor Mahinar and Mohd Yasin, Norhashimah and Ng, See Teong (2017) How does values-based banking counter unfair terms in consumer contracts and notices in Islamic banks in Malaysia? In: 4th International Conference on Management and Muamalah 2017 (ICoMM 2017), 7th-8th Nov. 2017, Putrajaya, Malaysia. http://conference.kuis.edu.my/icomm/4th/eproceedings/IC%20002.pdf
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG1501 Banking
HG3368 Islamic Banking and Finance
K Law (General)
spellingShingle HG1501 Banking
HG3368 Islamic Banking and Finance
K Law (General)
Abu Bakar, Noor Mahinar
Mohd Yasin, Norhashimah
Ng, See Teong
How does values-based banking counter unfair terms in consumer contracts and notices in Islamic banks in Malaysia?
description In July 2017, Bank Negara Malaysia (BNM) in collaboration with Malaysian Islamic finance industry, released a ‘Strategy Paper on Value-based Intermediation (VBI)’. This paper articulates strategies to promote the application of VBI which aims to improve the products and services offered by Islamic banking institutions (IBIs) towards a better facilitation of entrepreneurship, community well-being, sustainable environment and economic growth, without compromising on shareholders’ returns. The VBI is based on SharÊ‘ah, which determines the underlying values, moral compass and priorities in Islamic banks. With the adoption of VBI, IBIs will need to consider the impact of their activities and actions on a wider range of stakeholders, including the financial consumers. The main purpose of this study is to highlight the voice of banking consumers on detriments due to unfair terms in consumer contracts and notices, which is rarely heard by IBIs and BNM. Finding in this study reveals that although BNM has issued a number of standards and guidelines to improve fairness, transparency and governance, but the adoption and enforcement of the standards is highly uneven across the Islamic banks in Malaysia. Using content analysis, this study analyses the impact of values-based banking and governance in solving the problem of unfair contract terms and notices in Islamic banks. Therefore, this paper recommends that IBIs to take the leadership role in advocating values-based banking and governance in ensuring fair treatment, ethical banking and a more socially responsible banking environment to the consumers/community in line with sustainable development goals of SharÊ‘ah. The outcome of this study will be helpful to IBIs in enhancing their branding image and reputation towards facilitating business success over time.
format Conference or Workshop Item
author Abu Bakar, Noor Mahinar
Mohd Yasin, Norhashimah
Ng, See Teong
author_facet Abu Bakar, Noor Mahinar
Mohd Yasin, Norhashimah
Ng, See Teong
author_sort Abu Bakar, Noor Mahinar
title How does values-based banking counter unfair terms in consumer contracts and notices in Islamic banks in Malaysia?
title_short How does values-based banking counter unfair terms in consumer contracts and notices in Islamic banks in Malaysia?
title_full How does values-based banking counter unfair terms in consumer contracts and notices in Islamic banks in Malaysia?
title_fullStr How does values-based banking counter unfair terms in consumer contracts and notices in Islamic banks in Malaysia?
title_full_unstemmed How does values-based banking counter unfair terms in consumer contracts and notices in Islamic banks in Malaysia?
title_sort how does values-based banking counter unfair terms in consumer contracts and notices in islamic banks in malaysia?
publisher Faculty of Management & Muamalah, Kolej Universiti Islam Antarabangsa Selangor (KUIS)
publishDate 2017
url http://irep.iium.edu.my/56526/
http://irep.iium.edu.my/56526/
http://irep.iium.edu.my/56526/1/56526_How%20Does%20Values-Based%20Banking.pdf
first_indexed 2023-09-18T21:19:45Z
last_indexed 2023-09-18T21:19:45Z
_version_ 1777411802608435200

Similar Items