KUALA LUMPUR, Sept 25 (Bernama) -- The Islamic banking industry is on track to achieve a 40 per cent market share in Islamic banking assets by 2020 in line with the target set by Bank Negara Malaysia (BNM).

Association of Islamic Banking and Financial Institutions Malaysia President Datuk Adissadikin Ali said currently, the market share of Islamic banking assets stood at 30 per cent.

He added that the target could be achieved through initiatives taken by Islamic banking players to differentiate themselves further, among others, through the adoption of value-based intermediation (VBI).

"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 told reporters after announcing the Global Islamic Finance Forum 2018 (GIFF 2018) here today.

The VBI was introduced by BNM in 2017 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.

Meanwhile, Rafe Haneef, GIFF 2018 Organising Chairman and Chief Executive Officer of Group Islamic Banking of CIMB Group, 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," he said.

BNM Governor Datuk Nor Shamsiah Mohd Yunus will deliver a keynote address at the GIFF 2018 themed "Beyond Profit" which will be held on Oct 3-4.

Various Islamic finance events will also be held in conjunction with the GIFF, including the 13th International Shariah Scholars Forum and the CIBAFI-World Bank Conference on Corporate Governance.

-- BERNAMA