It thus aims to effectively meet the information requirements of bankers, financiers, statisticians, economists, researchers and prospective investors as well as increasing awareness of both domestic and foreign users. Moving forward, the website will be linked with other markets to serve as a platform for exchanging information and knowledge beyond our own borders. Ekspo Perbankan Islam dan Takaful adalah satu lagi saluran informasi yang menghubungkan institusi kewangan Islam secara langsung dengan pelanggan. Sehubungan ini, saya menggesa institusi kewangan Islam mengambil kesempatan untuk memasar dan menawarkan produk dan perkhidmatan mengikut keperluan mereka. Saya difahamkan, ekspo pada tahun ini turut disertai beberapa buah negara asing. Sesungguhnya penyertaan mereka ini akan memberi kesan positif kepada usaha-usaha kita untuk menjadikan Malaysia sebagai pusat kewangan Islam serantau. Tuan-tuan dan puan-puan, Usaha kita ialah untuk membangunkan sebuah sistem kewangan Islam sebagai satu proses perantaraan yang dapat menyumbang kearah memperkayakan sumber ekonomi secara menyeluruh bagi menjana pertumbuhan dan pembangunan yang lebih besar. Selaras dengan perkembangan semasa, institusi kewangan Islam perlu bersedia untuk menghadapi cabaran dan peluang dalam memenuhi kehendak ekonomi yang sentiasa berubah. Prospek masa depan dan kejayaan industri perkhidmatan kewangan Islam bergantung kepada gandingan usaha semua pihak iaitu pengawalselia, industri, peserta pasaran dan masyarakat umum. Sehubungan ini, saya ingin mengucapkan syabas dan tahniah kepada AIBIM di atas usaha berterusan untuk menganjur Ekspo Perbankan Islam dan Takaful ini sebagai acara tahunan. Dengan lafaz Bismillahirrahmanirrahim, saya dengan sukacitanya merasmikan pelancaran “Ekspo Perbankan Islam dan Takaful 2004”. Terima kasih. 2  BIS Review 56/2004

This is low in relation to other countries and makes households vulnerable to an interest rate increase that is higher than currently expected. Compared with losses on loans to the enterprise sector, losses on loans to the household sector were low during the banking crisis at the end of the 1980s. Despite high real interest rates and a decline in income, households were largely able to service their debt. High interest expenses and a decline in income, however, forced households to reduce consumption. This led subsequently to lower turnover in enterprises and weakened profitability and debt-servicing capacity. In this way, households contributed to an increase in banks’ losses on loans to the enterprise sector. The higher the household debt burden, the stronger the potential spillover effect from the household sector to the enterprise sector. The effects of weak economic developments and/or a change in interest rates on financial stability will depend both on the initial situation in households and enterprises and on banks’ ability to absorb losses. An analysis presented in Financial Stability 1/04 showed that a sharp increase in interest rates and a subsequent fall in house prices may increase banks’ losses to 2.5 per cent of gross lending. This is roughly half of what losses were at the beginning of the 1990s. The moderate increase in loan losses is due primarily to an improved financial situation in the enterprise sector. Banks’ capacity to absorb loan losses depends on their results and their capital adequacy.