The Application of Value-Based Intermediation Through Waqf in Islamic Banking: A Case Study of Bank Muamalat Malaysia Berhad

Mohd Izuwan  Mahyudin; Asmak Ab Rahman

doi:10.33102/jmifr.532

Authors

Mohd Izuwan Mahyudin Department of Shariah and Economics Academy of Islamic Studies, Universiti Malaya https://orcid.org/0009-0009-3104-0543
Asmak Ab Rahman Department of Shariah and Economics Academy of Islamic Studies, Universiti Malaya

DOI:

https://doi.org/10.33102/jmifr.532

Keywords:

Waqf, Value-Based Intermediation (VBI), Bank Muamalat Malaysia Berhad, The Corporate Social Responsibility (CSR)

Abstract

The Islamic financial industry has experienced an exponential transformation that has contributed greatly to the national economic growth. Malaysian Islamic finance is considered one of the most comprehensive Islamic financial systems in the world. Bank Negara Malaysia (BNM) has introduced a new concept of Value-Based Intermediation (VBI). This banking practice focuses on profit and supports social values for a sustainable economy, community, and environment. This study discusses the involvement of Bank Muamalat Malaysia Berhad in waqf development, focusing on business activities in line with VBI. This qualitative study applied document analysis and semi-structured interviews and found that Bank Muamalat Malaysia Berhad is an Islamic banking institution that bases its existence on commercial profits and is able to implement activities related to waqf development, such as cash waqf collection and waqf project financing consistent with VBI.

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References

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