Preparations for EU membership and the adoption of the euro have spurred a broad-based reform process. The adoption of the euro should not mark the end of this structural reform process. In order to reap the full benefits of euro adoption and to ensure sustainable convergence, this process should continue. As you know, economic and monetary integration between countries with somewhat different characteristics and levels of development requires careful preparation. However, you have already reached this stage and your planning for the introduction of the euro is almost complete. Looking ahead the adoption of the euro will enhance your integration with all EU partners. Today practical preparations towards the public are remarkably advanced and the euro campaign has been outstanding in Malta. Indeed, the Central Bank, and also the National Euro Changeover Committee can be praised for their excellent work paving the way for a smooth changeover. The ECB has contributed to this euro campaign by making the public acquainted with the visual appearance of the euro banknotes and coins and the security features. The framework used by the ECB and the CBM constitutes an optimal communication mix to ensure a good reach of the public. This means research, advertising, direct marketing, public relations (like this event today) or addressing the vulnerable population. Overall, around 500, 000 copies of publications will be distributed by the CBM or via multipliers – so more than the actual population.

Being smaller and relatively young, Islamic finance currently offers fewer product choices for consumers and less comprehensive risk management options for institutions. Cross-border investment flows are also constrained by differing interpretations of permissible transactions under  2  BIS central bankers’ speeches  Shariah principles. The isolated pools of Islamic liquidity in each market restrict opportunities for more efficient allocation of capital across consumers, industries, and jurisdictions. Islamic finance must become more integrated with the global financial system. The industry must expand beyond its traditional markets to include a wider range of financial institutions, investors and consumers. This means Islamic finance must strike roots in the key international financial centres of the world. These centres can contribute to Islamic finance in several ways. First, market liquidity. The broad and deep investor pools in international financial centres offer an opportunity to channel non-traditional sources of funds into Islamic finance. In Singapore, for instance, several local and foreign issuers have successfully tapped the capital markets using Islamic instruments. The demand comes from not just Singapore but a diverse group of international investors across Asia and Europe. Many of them are conventional investors, attracted by the credit quality and yields. Second, capabilities in global financial markets. Islamic finance should leverage on the capabilities and strengths offered by conventional financial markets in international centres, to augment the range of Shariah-compliant products. Take for example the market for Real Estate Investment Trusts, or REITs.