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New RFI Foundation report outlines way forward in defining impact-focused collaboration between Ethical finance and Islamic finance

By RFI Foundation | 14-Nov-2019

Jakarta, Indonesia, 14 November 2019 – An authoritative report was released today at the IFSB Summit in Jakarta, Indonesia by the Chairperson of the RFI Foundation’s Council of Advisors, Tan Sri Dr. Zeti Akhtar Aziz, during a session moderated by the RFI’s CEO, Blake Goud.  The report investigates similarities between Ethical and Islamic finance and provides recommendations to build upon the shared principles which link the two forms of responsible finance.

The report, Responsible Finance – Ethical & Islamic Finance: Meeting the Global Agenda, which was co-authored with Azleena Idris and Yousuf Sultan, outlines important lessons to avoid a repeat of the Great Financial Crisis by focusing on forms of financial intermediations that can promote economic, social and environmental sustainability that are strongly anchored to the real economy.  The report provides several potential areas of cooperation including:

  • Building greater awareness on the potential role of these forms of finance;
  • Leveraging on greater use of financial technology; and
  • Incorporating a more structured approach to build a culture of ethics and trust in financial system.

Dr. Zeti commented: “A framework of cooperation for responsible finance outlined in this report can support better articulation of the stated intent of both forms of responsible finance.  The report enables a more comprehensive approach to assess the impact of finance and the potential for these forms of finance to contribute to solutions for several of the challenges facing the global economy. The Responsible Finance & Investment (RFI) Foundation brings together responsible finance experts from around the world and has a unique role in providing a platform for greater engagement and cooperation to advance this agenda.”

Professor Datuk Rifaat Ahmed Abdel Karim, Chairperson of the RFI Foundation Board of Trustees, commented: “We thank Tan Sri Dr. Zeti for her contribution in this report for outlining the future for collaboration in responsible finance.  Her visionary leadership, which has provided guidance to and directly supported the growth of Islamic finance in Southeast Asia and globally, continues to shine a light on the future of Islamic finance by outlining the alignment with the other forms of responsible finance.”

Blake Goud, CEO of the RFI Foundation added: “It gives me great pleasure to release this report during the IFSB Summit with Dr. Zeti. By looking at both the failures that were exposed during the Great Financial Crisis and the subsequent response, and the recommendations presented by the report, the RFI Foundation will work with other industry stakeholders to increase the integration and measurement of environmental and social impact by all responsible finance, especially by the Islamic financial activities.”

The report is available for download at http://rpt.rfi-foundation.org/download.html



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