Bank Islam Malaysia

KFH strategises under five-year transformation plan

Its universal banking licence allows KFH Malaysia to offer the full suite of Islamic banking products and services.

However, for all that to happen, certain processes need to be put in place or refined.

“One of the key ingredients of success for the bank is the ability to create a conducive environment for all employees to achieve their maximum potential. We have been working diligently behind the scene to strengthen our organisational structure,'' tells StarBizWeek .

Under the previous organisational structure, she had found:

*Too much direct reporting;

*A large span of control which affected delivery and turnaround time;

*Lack of strategic direction; and

*Accountabilities not proportionately allocated to the heads of divisions.

A more refined organisational structure was introduced, effective January this year. Several improvements were targeted to:

*Optimise performance (cost control management) and streamline business processes;

*Align the business and operating models;

*Manage the quality of assets and credit better;

*Have more effective customers' interface;

*Grow and sustain business; maximise the profitability of the business opportunities;

*Focus on regional expansion; and

*Assign accountabilities that commensurate with responsibilities.

Realising that the bank is primarily known in the wholesale area, she is steering it into the retail arena to bring in a new income stream and make use full use of its universal banking licence.

At this stage, her efforts are viewed positively by the industry. “KFH Malaysia's direction to go into retail business is a wise move after the fall of their corporate endeavour,'' says an industry player, referring to the RM800mil debts it had incurred earlier. “The present stewardship is hitting the right note with its new gold savings product which is its darling product now. It will probably gain the retail market in due course. The CEO is trying hard and putting big money into above the line adertisements.''

“Respecting that KFH is our competitor, it would not be appropriate for us to comment on their revamping initiatives. Nevertheless, we wish them all the best for this positive exercise, which will definitely benefit the industry and consumer at large,” says a source from Bank Islam.

KFH Malaysia's initial foray into corporate and wholesale banking had, to a certain extent, helped in brand positioning.

Bank Islam to raise BFR to 6.60 per cent | Malaysia Business News

Bank Islam Malaysia Bhd will raise its Base Financing Rate (BFR) by 30 basis points to 6.60 per cent, per annum, from 6.30 per cent, previously, effective May 12, 2011.

Bank Islam Managing Director Datuk Seri Zukri Samat said the rate was being revised after Bank Negara Malaysia raised the Overnight Policy Rate by 25 basis points to 3.00 per cent and the Statutory Reserve Requirement (SRR) ratio, also to 3.00 per cent.

Bank Islam last revised the BFR on July 13, 2010 to 6.30 per cent, from 6.05 per cent, previously.

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