A service provided by Bank Islam — or by another person on its behalf — to one or more clients that, if disrupted, could either (a) cause intolerable harm to clients or (b) pose a risk to the soundness, stability, or resilience of the industry or markets.
Identifying CBS is essential to ensure Bank Islam can withstand, adapt to, and recover from disruptions (whether technological, operational, or external) while continuing to deliver essential services to customers and stakeholders.
These services are aligned with Islamic banking principles, emphasising ethical financing, risk sharing, and value creation for communities.
The Bank’s offerings span retail accounts, investment products, financing solutions, digital banking, and specialised business banking services.
As operational resilience shifts the focus from internal processes to services delivered to customers and the financial system, identifying CBS is a foundational step.
For a Shariah-compliant financial institution such as Bank Islam, service disruptions can result not only in financial loss but also in customer harm, loss of confidence, regulatory concern, and systemic implications within Malaysia’s Islamic banking ecosystem.
The objective of this chapter is to enable the reader to understand what constitutes a Critical Business Service for Bank Islam, why these services are considered critical under an operational resilience framework, and how they differ from traditional business functions.
By the end of this chapter, the reader should be able to identify, articulate, and justify Bank Islam’s CBS, providing a solid basis for subsequent activities such as impact tolerance setting, resource mapping, and scenario testing.
These services are essential both for the bank’s ongoing operations and for maintaining trust and stability in the Malaysian financial system.
Bank Islam provides Shariah-compliant deposit accounts, savings accounts, current accounts, and investment accounts for individual and business customers. These services are fundamental for customers’ financial management.
Disruptions in deposit and savings services can threaten customers’ ability to access funds, make payments, and maintain liquidity, causing significant financial harm and reputational risk.
Bank Islam offers a range of Shariah-compliant financing products, including personal, SME, home, and commercial financing. These products support daily living, business investment, and capital expansion.
Financing services are core revenue generators. Any prolonged service disruption (e.g., inability to process loan applications, disbursements, or repayments) can impact customers’ financial planning and the bank’s credit operations.
Critical retail and corporate payment services include funds transfers, bill payments, QR payments, and digital wallet services offered through platforms such as BIMB Mobile, BIMB Web, and digital banking apps.
Payments and fund transfers are high-volume, real-time services. Their disruption directly affects daily financial activities and can lead to systemic consequences if prolonged (e.g., inability to settle obligations or pay suppliers).
Bank Islam’s digital channels — such as Be U by Bank Islam, its cloud-native digital banking app, digital onboarding, and self-service platforms — deliver core banking functions to customers without requiring in-branch visits.
Digital banking has become central for customer engagement and transaction processing. Failure of these platforms can significantly disrupt service delivery and customer access.
Corporate services include business accounts, merchant services, trade finance, and financing tailored for enterprises (e.g., SME solutions through BIMB Biz and other business-focused offerings).
Corporate clients depend on uninterrupted banking services to manage working capital, payments, payroll, and trade operations. Disruptions can materially impact not only the bank but also the broader economy.
Treasury activities — including asset-liability management, investment portfolio management, and liquidity provisioning — are central to maintaining financial stability.
Treasury functions sustain the Bank’s market operations and regulatory compliance. A failure to manage liquidity or investment activity could endanger the bank’s financial position, market confidence, and regulatory standing.
Bank Islam must meet regulatory reporting requirements relating to financial reporting, Shariah compliance, risk management, and anti-money laundering (AML) practices.
Regular reporting and compliance activities ensure legal standing, market trust, and adherence to Islamic finance principles. Disruption or data inaccuracies can result in regulatory penalties and reputational harm.
|
CBS Code |
Critical Business Service |
Service Description |
Rationale for Criticality (Customer & Systemic Impact) |
Key Delivery Channels |
|
CBS-1 |
Deposit, Savings and Current Account Services |
Provision of Shariah-compliant deposit, savings, current, and investment accounts for individuals and businesses |
Customers’ inability to access funds can cause immediate financial hardship and loss of confidence in the banking system |
Branches, ATMs, Internet Banking, Mobile Banking |
|
CBS-2 |
Payments and Funds Transfer Services |
Processing of domestic and electronic payments, bill payments, QR payments, and interbank transfers |
Disruption impacts day-to-day financial transactions, settlement obligations, and market confidence |
Mobile Banking, Online Banking, Payment Networks (e.g. DuitNow) |
|
CBS-3 |
Retail Financing Services |
Provision and servicing of personal, home, vehicle, and consumer financing under Shariah principles |
Inability to disburse or service financing affects customers’ livelihood, contractual obligations, and financial stability |
Branches, Digital Channels, Financing Systems |
|
CBS-4 |
SME and Corporate Financing Services |
Financing, trade facilities, and working capital solutions for businesses |
Business disruptions may cascade into supply chains and the wider economy |
Relationship Managers, Business Banking Platforms |
|
CBS-5 |
Digital Banking Services |
End-to-end digital banking services, including onboarding, account servicing, and self-service transactions |
High dependency on digital channels means outages cause widespread customer harm at scale |
Mobile Apps, Web Platforms, Cloud Infrastructure |
|
CBS-6 |
ATM and Cash Withdrawal Services |
Provision of cash access through ATM and self-service terminals |
Cash access is critical during crises, especially for vulnerable customers |
ATM Network, Cash Management Services |
|
CBS-7 |
Treasury and Liquidity Management Services |
Management of liquidity, investments, and funding activities |
Failure may threaten financial stability, regulatory compliance, and solvency |
Treasury Systems, Market Platforms |
|
CBS-8 |
Regulatory, Shariah, and Financial Reporting Services |
Regulatory submissions, Shariah compliance reporting, and statutory disclosures |
Non-compliance may result in regulatory action, reputational damage, and erosion of trust |
Regulatory Reporting Systems, Data Platforms |
|
CBS-9 |
Fraud Detection and Customer Protection Services |
Monitoring, detection, and response to fraud and financial crime |
Failure exposes customers to financial loss and undermines trust in Islamic banking integrity |
Fraud Monitoring Systems, Customer Support |
Identifying Critical Business Services is a cornerstone of Bank Islam’s operational resilience programme, ensuring that the bank focuses its resilience efforts on what truly matters to customers, regulators, and the financial system.
Unlike traditional business continuity approaches that prioritise internal functions, CBS identification reframes resilience around service continuity and preventing customer harm.
By clearly defining its Critical Business Services, Bank Islam establishes a strong foundation for setting impact tolerances, mapping critical business services to people, processes, technology, facilities, and third parties, and conducting severe-but-plausible disruption testing.
This chapter, therefore, serves as a critical bridge between strategic intent and the implementation of practical resilience, enabling Bank Islam to strengthen trust, comply with regulatory expectations, and sustain service delivery during disruptions.
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Implementing Operational Resilience for Bank Islam: Aligning with BNM and Global Best Practices |
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| eBook 1: Understanding Your Organisation: Bank Islam | |||
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