Islamic finance needs to unlock innovations for economic, sustainability transformation: BNM

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KUALA LUMPUR: The Islamic financial sector needs to unlock impactful innovations for economic and sustainability transformation as well as double down...

: The Islamic financial sector needs to unlock impactful innovations for economic and sustainability transformation as well as double down on value-based finance to deliver more tangible impact, said Bank Negara Malaysia .

“The space for innovation in Islamic finance is vast, and yet, to this day, the full potential of Islamic finance has not been fully optimised as a tool for meaningful change to meet the world’s financial needs. In Islamic finance, he said Malaysia has the ability to “blend finance” using different forms of capital such as philanthropic and risk capital, thus expanding its intermediation role beyond credit provisions and risk transfers. “Looking ahead at the economic and financial needs of today and in the future, the funding, investment and risk protection needs of businesses and society today are much more diverse and complex.

Abdul Rasheed said another prime area for innovation is social finance, which could be harnessed towards lifting vulnerable groups out of the poverty and low-income trap.

 

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