Remarks to Open Policy Panel Mark Carney, Governor Bank of England ECB Forum on Central Banking – 20 Years of European Economic and Monetary Union Sintra, Portugal Tuesday 18 June 2019  1  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  Introduction It is an honour to participate in such a distinguished panel on such a special occasion. Before I begin, I should emphasise that the usual caveat of the past providing no guide to future performance applies particularly to my remarks today. My reflections are on history alone. I am speaking in the MPC’s blackout period, so my comments have no bearing whatsoever on the decision to be announced by the MPC on Thursday. There are no messages – coded or clarion – in what follows … about policy. But there is one message that my presence here today is meant to convey. I want to pay homage to President Draghi’s extraordinary leadership of the ECB, the ESRB, the FSB and, by example, of the G7 and G20. The crisis years here have been extraordinarily challenging but these challenges have been met because of his leadership, innovation and determination. The theme for this year’s conference is “20 years of European Economic and Monetary Union”. I will focus my remarks today on how monetary policy has evolved over that period, drawing on the experiences of the ECB and Bank of England. Economic performance The global financial crisis divides the past twenty years.

The Master Plan would allow countries the option to evolve the financial system sequentially, or alternatively the option to accelerate the process of development by providing countries the opportunity to develop the institutions and supporting infrastructure simultaneously. Significance of banking system At the outset, due attention needs to be given to promoting the development of a comprehensive Islamic financial system, involving the development of the key structural components of the system, comprising the Islamic banking industry, the takaful industry, the non-bank financial institutions, and the Islamic interbank and capital markets. The comprehensiveness of the system will allow for a more balanced allocation of financial and economic resources within an economy and ensure greater diversification of risks within the Islamic financial system. This enhances the resilience and robustness of the Islamic financial system to withstand financial shocks and contributes to the overall stability of the Islamic financial system. The respective components of the Islamic financial system are also highly integrated and inter-dependent. A more diversified Islamic financial infrastructure will contribute to the more efficient functioning of the overall financial system. Given its roles in the intermediation process and payments system, the Islamic banking system will continue to be at the core of the Islamic financial system. A well functioning and efficient banking system is vital for achieving robust economic performance. As financial intermediaries, banks are entrusted to safeguard their deposits and preserve the efficiency in the manner the funds are mobilised, while vigilantly channeling these savings to productive investments.