Strengthening the Financial Intermediary Role of Islamic Banks through Sustainable Development Goals

Abstract:

This research stand with two main objectives that look into (i) the relevancy of Sustainable Development Goals(SDGs) in IFSI, with a special focus on the financial intermediary roles of Islamic banks, and (ii) the positive impacts of SDGs in expanding the financial intermediary roles of Islamic banks. After the discussion on the United Nations’ SDGs, the financial intermediary role of Islamic banks is discussed. The researchers found that the SDGs in Islamic banks are closely related to their faith-based principles that closely related to prohibition of interest, excessive ambiguity, and gambling. It is recommended for Islamic banks to implement SDGs in their policies and to make transparent reports on their activities.