View this email in your browser
What's Next for Islamic finance post Covid-19?

In this issue, we bring you a series of webinar discussions on Islamic finance and Covid-19 as organised by the MIFC community members and reputable organisers in partnership with MIFC.  The discussion series, among others highlighted the impact of Covid-19 on the global Islamic finance industry as well as how Islamic finance can contribute and play an active role by strategically repositioning itself in response to the pandemic.

The second part of the newsletter features global updates of the Islamic finance industry.  It includes publication of reports on the opportunities of utilising Islamic finance instruments (e.g. social finance) to address Covid-19 while aligning them with the Sustainable Development Goals (SDGs), as well as announcements of the latest Shariah rulings by the Shariah Advisory Council of Bank Negara Malaysia on the permissibility of electronic money as a payment instrument under Shariah, execution of tawarruq via Straight-Through Processing and structuring of ar-rahnu products based on tawarruq and rahn.

Eid Mubarak,
The MIFC Team
Webinars on Islamic finance and Covid-19
The COVID-19 pandemic has affected individuals, companies and economy including Islamic banks. What is the role of Islamic banks? What is the impact of Covid-19? How can Islamic banks sail through Covid-19 and continue supporting their clients and community?

This webinar brings together panellists Dato’ Mohamed Rafique Merican, CEO Maybank Islamic / Chairman of IBFIM, Mr. Arsalaan Ahmed, CEO HSBC Amanah, Prof. Dato’ Dr. Azmi Omar, PCEO INCEIF and moderator Asst. Prof. Dr. Ziyaad Mahomed, Director of Executive Education and E-learning INCEIF to discuss these issues.
Download infographic & watch webinar

Impact of the Coronavirus Pandemic on the Global Islamic Finance Industry

Leading Islamic finance executives from around the world discussed the impact of the coronavirus pandemic on the global economy in general, and the Islamic finance industry in particular. The webinar highlighted that the liquidity crunch faced by the banks in the Gulf Cooperation Council (GCC) countries is expected to lead to a consolidation of Islamic banks in the region. This webinar is organised by Refinitiv, in partnership with MIFC and AIBIM. Note: This is an on-demand video
Watch webinar

Covid-19 - The Impact to Islamic Finance

CERT Events, a community member of MIFC organised a webinar where expert panellists from various backgrounds shared their thoughts and ideas on the impact of Covid-19 on Islamic finance. The discussion topics include the new normal for Islamic financial institutions.
Watch webinar

Responding to COVID-19: How Islamic Finance Can Help

The World Bank, in partnership with MIFC and AIBIM organised a webinar to discuss how various Islamic finance instruments could be used to support the recovery efforts in different countries, with a particular focus on those with significant or growing Islamic financial sectors. The discussion also covered various methods to deploy Islamic finance instruments at the global level to deal with the after effects of the outbreak.
Watch webinar

Positioning and Repositioning Islamic Finance Post Covid-19

Organised by CERT Events, the webinar discussed the positioning and repositioning of Islamic finance post Covid-19 and how Islamic finance can play a more positive role in responding to the crisis. The webinar highlighted the importance of balancing profit and impact including bridging gaps in preserving the environment, enhancing national food security, strengthening health infrastructure and reaching out to the unbanked/underbanked community.
Watch webinar

Islamic Finance and the SDGs: Framing the Opportunity

The International Shari’ah Research Academy for Islamic Finance (ISRA) in partnership with The Islamic Finance Council UK (UKIFC), has launched the first report in a thought leadership series that aims to assist and encourage active engagement of the Islamic finance sector in supporting the UN Sustainable Development Goals (SDGs). The report provides an introduction to the SDGs within the context of Islamic finance, emphasising the opportunity that the SDGs present to the Islamic finance sector.
Read More

Islamic Finance Takes on Covid-19

United Nations Development Programme’s (UNDP) Integrated Response to Covid-19 offers support and guidance to countries to prepare, respond and recover from the pandemic. Islamic finance can be part of the Covid-19 response through a range of financing instruments well-suited for each stage of recovery. For example, zakat can be utilised for emergency support in the short term.
Read More

Islamic Social Finance a Viable Way to Assist MSMEs

Islamic financial institutions can provide micro financing facilities to Micro, Small and Medium Enterprises (MSMEs) at lower rates compared to traditional modes of financing i.e. by using mechanism of social finance.
Read More

Study on Islamic Endowments to Meet SDGs and Addressing Covid-19

The United Nations Resident Coordinator Office (UNRCO) in Saudi Arabia has signed an agreement with the Islamic Corporation for the Development of the Private Sector (ICD) to conduct a study on the potential of Islamic endowments in relation to the achievement of Saudi Arabia’s National Transformation Programme (NTP) and the UN SDGs in the Kingdom. The study will provide a conceptual framework by which awqaf can align with Saudi Arabia’s NTP and the SDGs as well as addressing the potential for awqaf to respond to the Covid-19 pandemic.
Read More

Covid-19 Presents an Opportunity for Banks to Go Fully Digital

The Covid-19 pandemic is forecast to shrink the global economy by as much as 6% in 2020, and as cities remain in lockdown, the numbers are unlikely to improve. Despite this, the current situation could present an opportunity for financial institutions to make the leap and go digital – even though banks are tightening their belts and putting tech investments on the back burner.
Read More
Press Release

Insurance, Takaful Industry’s Covid-19 Test Fund Broadens Eligibility Criteria

Policyholders/certificate holders with medical and health insurance are now entitled to be reimbursed up to RM300 (USD68) if they are required to undergo screening for Covid-19 before an emergency or semi-emergency surgery.
Read More

Ruling of the Shariah Advisory Council (SAC) of Bank Negara Malaysia on Electronic Money, Straight-through Processing and Ar-rahnu

Bank Negara Malaysia has recently released the ruling of the SAC in which electronic money, straight-through processing and ar-rahnu are permissible subject to several conditions and to be structured based on appropriate Shariah contract(s) to preserve the rights and obligations of the contracting parties.
Read More
Download Report
Islamic Finance Library
Islamic Finance Dashboard
Upcoming Webinars
The Impact of International Financial Reporting Standards (IFRS) to Islamic Financial Institutions
Date: 10 June 2020 (10 am)
Format: Zoom Webinar

Documentation for Islamic Hire-Purchase
Date: 10 June 2020 (2.30 pm)
Format: Zoom Webinar

For more information, please click here
Global News on Islamic Finance
  1. GCC to see new phase of bank mergers in post-Covid period
  2. UAE: Higher Shariah Authority at Central Bank issues guidelines for COVID-19 relief
  3. SBP issue guidelines to dampen Covid-19 effects
  4. GCC to see new phase of bank mergers in post-Covid period
  5. Higher Shariah Authority at CBUAE hosts 2nd meeting of Centralised Shari’ah Authorities
  6. UAE Launches Initiative to Build Unified Global Legislative Framework for Islamic Finance
  7. Turkey to issue euro- and dollar-denominated bonds and sukuks
  8. Oman launches initiative to develop digital zakat system
  9. Saudi Islamic banks' financial metrics deteriorated, but sound
If you have enjoyed this issue of Epicentre or found it useful, feel free to forward it to a colleague or friend. If this newsletter was forwarded to you, and you would like to be added to the mailing list, subscribe here
Copyright © 2020 Bank Negara Malaysia. All rights reserved.
Please log on to for more information. 

DISCLAIMER: The copyright and any other rights in the selection, coordination, arrangement and enhancement of the information in this electronic newsletter are owned by Bank Negara Malaysia. No part of this electronic newsletter may be modified, reproduced or published without prior permission in writing from Bank Negara Malaysia and the relevant copyright owner. Although every effort has been made to ensure the timeliness, accuracy, adequacy and completeness of this electronic newsletter, Bank Negara Malaysia accepts no responsibility or liability for errors or omissions, if any. The information contained in this electronic newsletter is only up-to-date at the time of transmission, and is not exhaustive and may be updated from time to time on the website: Bank Negara Malaysia shall not be liable for loss or damage caused by viruses transmitted by this electronic newsletter. Bank Negara Malaysia is not responsible for any unauthorised changes made to the information in this electronic newsletter or for the effect of such changes. Bank Negara Malaysia appreciates any feedback or suggestions for improvement.