‘Islamic banking industry set to achieve 40pc market share by 2020’
KUALA LUMPUR: The Islamic banking industry is on track to achieve a 40 per cent market share in total banking assets by 2020 in line with the target set by Bank Negara Malaysia.
Association of Islamic Banking and Financial Institutions Malaysia president Datuk Adissadikin Ali said the market share of Islamic banking assets stood at 30 per cent currently.
He said the target could be achieved through initiatives taken by Islamic banking players to differentiate themselves further through the adoption of value-based intermediation (VBI), among others.
“VBI will take us there. As of now, we are pushing it further to ensure the word sustainability will be there. Islamic banking is sustainable banking,” he said after a briefing on the Global Islamic Finance Forum 2018 (GIFF 2018), here, yesterday.
The VBI was introduced last year to strengthen the roles of Islamic banking institutions and position the industry as a prominent and leading agent of change by incorporating holistic business practices and offerings in the financial system.
GIFF 2018 organising chairman and CIMB Islamic Bank chief executive officer Rafe Haneef said the market share of Islamic banking assets in Malaysia leapt to a high of 28 per cent in 2016 from 7.1 per cent in 2010 but had since plateaued.
“This signals the need to explore opportunities to boost growth and reinvent strategies to enhance our market share.”
Bank Negara governor Datuk Nor Shamsiah Mohd Yunus will deliver a keynote address at GIFF 2018, themed “Beyond Profit”, to be held on October 3-4.
Various Islamic finance events will also be held in conjunction with GIFF 2018.