Stable outlook for Islamic banking industry

RAM Ratings has maintained its stable outlook on the country’s Islamic banking industry as it expects the industry to stay resilient despite lingering risks from Covid-19, Bernama reported.

In a statement yesterday, RAM said the industry is poised to continue leading efforts towards a wider adoption of value-based intermediation (VBI).

“An increased focus on Islamic sustainable finance has created new opportunities, enabling banks to build on their existing value-based practices and solutions to strengthen the impact of VBI.

“This puts Islamic banks in a good position to meet the requirements of Bank Negara’s Climate Risk Management and Scenario Analysis, effective June 1, 2022,” it said.

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