As a service provider, the CRIB should look after its clients, but its action should not lead to social injustice and be detrimental to public policy objectives. As we know, the CRIB was set up at a time during which high credit default rates were posing a threat to the stability of the financial system with the failure of several finance companies. Undoubtedly, the CRIB has been able to prevent the wide-spread credit indiscipline by willful defaulters. However, one needs to weigh the costs and benefits of flagging the defaulting borrowers within the CRIB’s network against the resultant denial of access to, or elimination of, certain borrower groups from the formal credit institutions. In this connection, it is important to identify the class, the segment, or the group of defaulting borrowers who have been denied access to the formal credit institutions. According to information available at the CRIB as at 20.06.2006, of the 261,322 loans reported, 67% of borrowers have taken loans less than Rs 1 million. The percentage for those who have borrowed less than Rs 5 million was 95% as at the same date. Loans over Rs 5.0 million was only 5% of the total number of loans reported. However, these figures do not include the regular loans below Rs 500,000/= and irregular loans below Rs 100,000/=. Following the default records forwarded by credit institutions, the CRIB attaches a negative label and that does not allow many of these defaulters to access any credit institution in this country.

More recent efforts have focused on strengthening regional financial integration which is aimed at promoting the more efficient intermediation of funds in Asia. The strengthening of domestic demand and the greater regional financial and economic connectivity within Asia has also enhanced the resilience of the region. BIS central bankers’ speeches  1  Islamic finance in the evolving new frontier in Asia Given that Islamic finance is a form of financial intermediation that is closely linked to the real economy arising from its requirement that financial transactions needs to have an underlying economic transaction, its accelerated growth and dynamic expansion across the financial landscape in Asia brings with it the tremendous potential to reinforce the transformative trend that is characterizing the region. With greater liberalization, Islamic finance is increasingly supporting regional and international trade and investment flows, intermediating significant cross border financial flows. With its internationalisation, Islamic finance has become an increasingly more important channel for the efficient allocation of Asia’s surplus funds towards productive investments in the region. This trend is also contributing towards the strengthening of global financial and economic linkages, particularly between Asia and the Middle East. The vast population in Asia and the growing middle-income group, combined with high savings rates in the region have substantially heightened the demand for a wider spectrum of financial products and services. These trends have increased the opportunities in retail and investment banking, takaful, and fund and wealth management businesses in the region.