The IFSB also provides the platform for cooperation among the regulators through meetings, conference and the setting-up of working groups that give the opportunity for regulators to discuss and exchange information on issues confronting the Islamic finance. Having a wide network comprising 84 members from all over the world, the IFSB provides members with access to broader information and guidance. In addition, the IFSB, through its linkages with other international bodies, which includes the International Monetary Fund (IMF), Bank for International Settlements (BIS), AAOIFI , the International Association of Insurance Supervisors (IAIS) and International Organisation of Securities Commissions (IOSCO), will be able to create synergies in the future development of international standard for Islamic finance. 23. In the area of takaful regulation and standard, we have seen excellent progress taken by IFSB. Of recent development is the cooperation between IAIS and IFSB in the formulation of international standards for takaful. In this regard, a joint working group comprising representatives from IAIS and IFSB has been formed to assess the applicability of the IAIS insurance core principles for takaful. The joint working group has made significant progress through the issuance of an Issue Paper on Issues in Regulation and Supervision of Takaful. The Issue Paper has identified four major areas that require immediate attention. These are the corporate governance, financial and prudential regulation, transparency, reporting and market conduct as well as supervisory process, which may lead to the issuance of a specific guidance paper or standard that corresponds with the IAIS insurance core principles. 24.

Indeed, leaving aside the case of Lehman Brothers, which was not a commercial bank but an investment bank without retail depositors, and the most particular case of Cyprus in 2013, I know of no other instance during the crisis that began in 2008 of the authorities of a country having adopted a bank winding-up solution that entailed losses for depositors. 9/14  The strategy chosen sustained the viability of the banks that received aid, maintaining their regulatory capital and the continuity of their core functions, and thereby protecting their depositors. As Table 2.8 in the Report (p. 137) shows, at end-2011, the aid assigned to banks had already risen to € billion € billion of which were in the form of public aid through the FROB, and the rest comprising private funds through the DGS). This aid enabled the banks that received it to sustain deposits, totalling around € billion, around one-third of credit institutions’ total deposits, of which over € billion were guaranteed. As regards the second scenario, the strategy of an early public bail-out for a significant portion of the system of credit institutions, which was at the time colloquially known as the “manguerazo” (liquidity dousing), was a means opted for in 2008-2009, with various formats, by countries such as Germany, the Netherlands, the United Kingdom and the United States. However, in those years in Spain, private solutions prevailed, with liquidity support measures in 2008 and, from 2009, with injections by the FROB, mainly through preference debt instruments, i.e. hybrid debt (not capital) instruments.