(a) Explain briefly on the selected financial institution background that play a role as financial

intermediaries in financial system and the development of financial service industry

1.0 Introduction

Risk is defined as the uncertainty that cause probable loss. This concept can be applied to
both individual and large MNC companies. For banks in particular, risk means the
probabilities that uncertainties will affect bank’s strategies, vision and mission (Wahyudi et
al,2018). Banks in general are one of the business entities that faced several risks in their
daily business operations.

(Company Background)

Bank Islam Malaysia Berhad (BIMB) is the pioneer of Islamic Bank in Malaysia and it
operates since 1983. It was the first Islamic bank in Malaysia holding more than 140
branches locally. The vision and mission statement of BIMB are closely related to improve on
Shariah-compliant services and Islamic Banking industry as a whole (BIMB, 2021). BIMB had
greatly contributed to Malaysia Islamic Banking and adjusted to enhance Malaysia’s
Government’s aspirations. This can be observed when BIMB was awarded for the title of
Strongest Islamic Retail Bank in Malaysia in 2020 (BIMB, 2021). Generally, Malaysia’s Islamic
Bank industry had grew in a stable manner hence there are now 16 Islamic Banks operating
competitively.

(Principal Activities)

Bank Islam Malaysia engage in diversified financial activities and maintain a portfolio of well-
versed business lines aligned to the Islamic financial industry. In early stage of business, it
mainly caters Shariah approved financial products and services. In contemporary Islamic
Banking environment, BIMB expanded its main profit activities into provide financing to legal
entities, Takaful-related business and stockbroking (BIMB, 2021). Last but not least, BIMB
also strictly complying with Shariah prohibition principles as in the profit-sharing mechanism
in their business operations, serving major Islamic Finance activities demanded by Malaysia’s
customers. BIMB’s financial services are all adhered to Shariah principles which encourage
responsibility to the society and economic activities.
Reference list:

BIMB, H., 2021. Money Market – Bank Islam Malaysia Berhad. [online] Bankislam.com.
Available at: <https://www.bankislam.com/business-banking/treasury/money-market/>
[Accessed 31 May 2021].

BIMB, H., 2021. Who We Are | BIMB Holdings Berhad (BHB) [online] Bimbholdings.com
Available at: <https://www.bimbholdings.com/about-us/who-we-are> [Accessed 31 May
2021].

BIMB, 2021. Awards and Recognitions – Bank Islam Malaysia Berhad. [online]
Bankislam.com. Available at: <https://www.bankislam.com/corporate-
info/resources/awards-and-recognitions/> [Accessed 31 May 2021].

Wahyudi, A., Pekkola, S., Hanssen, M., (2018). Representational Quality Challenges of Big
Data: Insights from Comparative Case Studies. Lecture Notes in Computer Science (LNCS),
11195.