Dr. Mohd Daud Bakar on the storyline of Islamic Finance

Islamic finance would need a new storyline, would need a new narration to make it more trendy and fashionable and to suit the modern expectations of this new banking.

From time to time, people has changed, people has evolved, if you like, in terms of the expectation, in terms of their understanding, of anything in this world from the IT to the medical to the social life.

Human has evolved and the same goes to Islamic banking and Finance – for the last forty years Islamic Banking and Finance perhaps has been perceived in one form or another but the time has come in the 21st century for the players of the industry to really put a new narration.

What would be the new narration, then?

Narration for Islamic Finance

As for me, the new narration would be – Islamic finance is for all, is not limited to any particular faith, any particular race, any particular geography.

Number two, Islamic finance is as good as a conventional finance in terms of transparency, risk management, good governance and quality of control and the best practices of any financial conduct.

The third element of the new narration Islamic Banking & Finance โ€“ it helps the real economy to evolve and to develop and to mature and to benefit everyone in the society.

And the fourth element – which is quite important, Islamic Finance is not that difficult to understand.

It should be made easy, it should be made human, it should be made very much close to humanity as all Islamic banking should be humanized.

We have to put the agenda of humanizing financial activities through products and services which are very dear and close to the heart of the society.

They are not being cheated, they are not being โ€“ if you like โ€“ misled, everything should be transparent, everything should be clear-cut, and the risk, the degree of the risk should be exposed to them and everything should be done in the proper disclosure and the proper transparency and in the proper articulation of the risk and reward as well as the behavior of the financial contract.

These are the four pillars of the new narration of Islamic Banking and Finance in the 21st century.


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