ABSTRACT
Financial sustainability and values creation are the essential features of sustainable Islamic finance, especially in Islamic banking sector, as they are consistent with the principles of maqasid al-Shari’ah. In supporting sustainable Islamic finance, VBI was introduced by Bank Negara Malaysia (the Central Bank) in 2017, aiming to achieve anticipated Shari’ah outcomes through policies, actions and services which have meaningful and sustainable impacts on the economy, society and the environment. This study provides insight via empirical evidence on how corporate governance practices in Islamic banks support the agenda of VBI and sustainability and proposes a reform in board composition structure to support the objective of VBI and Islamic sustainable finance.
