This is even more relevant in the multi-facet role played by the Islamic financial institutions in dealing with Islamic banking customers as the Islamic financial transaction is not merely based on the lender and borrower relationship as is the case in conventional banking. The move towards the adoption of the supervised market approach requires continuous efforts to enhance product disclosures and to elevate the level of financial literacy of consumers. BIS Review 3/2004  3  To further enhance transparency in the conduct of banking institutions, proper accounting standards need to be in place to reflect the true and fair value of banking operations that would lead to greater accountability and responsibility on the part of the banking institution. Accurate financial reporting requires a body of financial accountants that are well-versed in Shariah principles to ensure that the accounts are not only drawn in accordance with the international accounting standards but are also in line with Islamic principles. This is to enable the investors and supervisors to obtain the true and fair assessment of the Islamic institution’s financial condition and the profitability of the business. Transparency and disclosure is even more crucial in Islamic banking where the concept of mudharabah (profit-sharing) entails an investor-entrepreneur relationship and is a significant element in sourcing of funds. The establishment of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has made a significant contribution in formulating and issuing accounting and auditing standards for Islamic financial institutions.

The regional network provides up-to-date information on the state of the Norwegian economy. Regular communication with local contacts in Norway’s business and community life provides us with information that supplements available official statistics. It also provides us with supplementary information about areas not covered by official statistical sources, and we learn which issues are of particular concern to enterprises. The network consists of companies, organisations and municipalities throughout Norway. In six rounds of talks each year, we engage in discussions with business and community leaders on financial developments in their enterprises and industries, with about 200 visits in each round. The selection of contacts represents the production side of the economy, both industry-wise and geographically. The network will comprise about 1000 contacts in the course of 2003, who will be contacted once or twice a year. Allforsk in Trondheim is responsible for the contact meetings in Central Norway. The industry structure in Central Norway is not substantially different from the rest of Norway. The public sector and some private service segments are important for employment in Central Norway. Primary industries are relatively more important in this part of the country. A large share of the workforce in Central Norway is employed in the public sector, in part because there is substantial research and development activity in this region. Focusing on knowledge is very important for the economy’s long-term production capacity, both for the nation and for the region.