The TPI will be an addition to our toolkit and can be activated to counter any unwarranted, disorderly market dynamics that pose a serious threat to the transmission of monetary policy across the euro area. By safeguarding the transmission mechanism, the TPI will allow the Governing Council to more effectively deliver on its price stability mandate. Subject to fulfilling established criteria, the Eurosystem will be able to make secondary market purchases of securities issued in jurisdictions experiencing a deterioration in financing conditions not warranted by economic fundamentals, to counter – to the extent necessary – risks to the monetary policy transmission mechanism. The scale of TPI purchases will depend on the severity of the risks facing monetary policy transmission. Purchases are not restricted ex ante. The main characteristics of the TPI are as follows: Purchase parameters. Purchases will be focused on public sector securities with a remaining maturity of between one and ten years. Purchases of private sector securities could be considered, if appropriate. Eligibility. The Governing Council will consider a cumulative list of criteria to assess whether the jurisdictions in which the Eurosystem may conduct purchases under the TPI pursue sound and sustainable fiscal and macroeconomic policies. In particular, the criteria include: (1) compliance with the EU fiscal framework; (2) the absence of severe macroeconomic imbalances; (3) having a sustainable public debt trajectory; and (4) compliance with the commitments contained in the recovery and resilience plans and with the country-specific recommendations in the fiscal sphere under the European Semester. Activation.

And Singapore’s CapitaLand and the Middle Eastern-owned Arcapital Bank have recently set up a property fund aimed at investing in Japanese real estate, with a target asset size of $ 300 million. 2  BIS Review 47/2005  Second, similarly for the banking sector. I expect to see more Middle East banks and financial institutions set up in Singapore and Asia going forward, and a counter-flow into the Middle East over time. Some Middle East banks are already planning to scale up their presence in Singapore to service Middle Eastern entities interested to operate in Asia, as well as to help Asian corporates to operate in the Middle East. There are similar plans by Singapore-based financial institutions to step up their profile in the Middle East as they seek to tap into Middle Eastern financial flows. Such plans may give added impetus as Singapore concludes FTAs with more Middle Eastern countries, including those which are currently ongoing with Qatar and Kuwait. Third, Islamic finance is an area that shows considerable promise globally. We know the size of the market - around $ 200 to $ 300 billion globally, and growing at about 15% per annum. Efforts are being made in Asian markets, to grow Islamic financial services. For example, Malaysia has been awarding Islamic banking licences to foreign players and encouraging the subsidiarisation of Islamic banking windows. It aims to have 20% of total banking assets to be Islamic by 2010. Singapore, as an international financial centre, is also keen to offer Islamic financial services.