Page 88 - Bank-Muamalat-AR2020

86 BANK MUAMALAT MALAYSIA BERHAD About Us Our Leadership Our Strategy
About Us
ANNUAL REPORT FY2020

ECONOMIC

Uplifting the Community The VBI-aligned portfolio consists of the following sectors:
As a Bank with a community focus, Bank Muamalat strives to RM227.7 RM198.9
make affordable financing more accessible to the underserved
lower income groups and vulnerable sectors. This is done by Million Million
actively channelling government funds and through our own Preserving Natural Education
financing solutions. Environment

Efforts to uplift the community through these financing solutions
are detailed in our Financial Inclusion initiatives on page 102. RM1,742.2 RM415.3
Million Million
Responsible Financing Policy Document
Platform for Raising Hospitals & Medical Provider
During the year under review, the Bank completed the Community Standard of
review of our Responsible Financing Policy Document which Living
is in line with our practice of responsible financing. We
frequently reviewed our policies to ensure any policy changes RM357.0 RM337.1
from regulators were implemented in a transparent and Million Million
prudent manner. Our employees were made aware of any
policy change through the issuance of circulars upon release Promoting Healthy Lifestyles SMEs
of new guidelines from regulators, and training sessions.
RM1,301 RM1,144
Enhanced Credit Assessment
Million Million
To facilitate a more objective credit assessment, the Bank
has an internal statistical-based credit scoring system Financing for underserved Financing for lower income
communities i.e. army
groups to own their first
which enables credit officers to better quantify the risk personnel and pensioners home
involved, hence helping to determine the creditworthiness
of financing applicants. The Bank also conducts regular RM1,090
training to continually develop employees’ ability to make
insightful credit judgement amid the rapidly evolving credit Million
management environment. Wealth financing towards
improving quality of life and
Financing within VBI parameters preserving financial security

The Bank ensures that new financing extended is within the
VBI parameters towards positive EES outcomes. We intensify On the retail financing front, alignment to VBI has catalysed
our focus on companies that act to enhance our environment initiatives towards inclusive financing, affordable housing
and contribute to the wellbeing of communities. and dynamic wealth creation products which are in line with
Maqasid Shariah, delivering unique proposition to satisfy our
Total VBI financing in FY2020 constituted about RM6,813.4 customers’ personal and financial wellbeing. These financial
million or 37.2% of total financing. and non-financial products are offered through expanded and
enhanced distribution channels to optimise access and reach
During the year, our total exposure of business financing to underserved communities.
aligned with VBI has increased by 6.15% to RM3.28 billion
from RM3.09 billion, accounting for 53% of total non-retail As at 31 December 2020, total retail financing directed
financing. All financing disbursed were in accordance with towards the following purposes totalled RM3,535 million. This
Shariah Governance and Shariah Risk Management policies. encompasses RM1,301 million worth of financing directed to
army personnel and pensioners; RM1,144 million financing
towards helping lower income groups own their first home
and RM1,090 million worth of wealth financing products
targeted towards improving the quality of life and preserving
financial security of the society across generations.