Through collaboration and strategic alliances between Malaysian Islamic fund management companies and the participation banks in Turkey, the development and distribution of Shariah compliant funds across borders could be made possible and new investment options to divest the savings of retail clients, as well as in the  BIS central bankers’ speeches  3  development of investment strategies to meet the needs of high net-worth individuals or sovereign funds. Fourthly, partnership in innovation – where the Malaysian and Turkish financial community could jointly develop innovative products and investment instruments, provide consultation and advisory services on complex legal, accounting, tax and Shariah matters as well as developing human talent to support the development of Islamic finance. Joint Shariah research could also be conducted with International Shariah Research Academy, dedicated research in applied Islamic finance based in Kuala Lumpur. And finally, on the education and research front, possible collaboration can be explored between the International Centre of Education in Islamic Finance or INCEIF and Turkish universities to give opportunities for Turkish students to enrol in professional and postgraduate programs. Students from Turkey intending to deepen their knowledge in Islamic financial industry are encouraged to consider learning opportunities offered by Malaysia including possible attachments with Malaysian financial institutions. As I speak, efforts to develop human capital are already taking place now, as a team from the Malaysian financial community led by the Central Bank of Malaysia is conducting a capacity programme on Islamic finance in Ankara. This programme is held in collaboration with the Islamic Development Bank.

Spanish resolution regulations are already based on this bail-in model. That said, the scope of the bail-in under Law 9/2012 is somewhat more limited than in the Directive, which requires that resolution costs be borne not only by shareholders and the holders of hybrid and subordinated instruments (as envisaged under Law 9/2012), but also by the institution’s creditors (with some exceptions, e.g. secured creditors or depositors for the amount guaranteed by the Deposit Guarantee Fund). That will necessitate the updating of Spanish resolution rules to broaden the set of creditors who must bear the cost of resolution. BIS central bankers’ speeches  3  Closely connected with the idea of the bail-in is a new term called GLAC (gone concern loss absorption capacity), which consists of establishing a loss-absorption requirement once resolution has been reached. Current debate on GLAC turns on what attributes financial instruments must have so they may be considered as possessing such loss absorption capacity. It is also being discussed what the appropriate amount for GLAC should be for banks to be able to continue performing their critical functions. Final considerations: simplification for the sake of effective regulation To conclude, this entire programme of reforms will be of little use if the various agents involved cannot implement it effectively. Implementation should involve two stages. Firstly, authorities should ensure that international agreements are properly transposed to their respective national frameworks. Secondly, for effective regulatory implementation to take place, there must be a pass-through from the theoretical and legal plane to everyday reality.