Other drivers of the turmoil included regulation and bank internal risk management limits, as well as concentrated reserve holdings (with a few banks holding large amounts of reserves). Despite the lack of contagion to the euro area in this episode, it is a relevant lesson to consider for future euro area monetary policy normalisation (while bearing in mind that concentration of reserves in the United States is structurally higher than in the euro area). [19] History can provide an interesting perspective and the paper by Anderson, Chang and Copeland (2020) featured in this conference examines the effects of central bank liquidity provision during the 1918 Influenza Pandemic; see Anderson, H., Chang, J.-W. and Copeland, A. (2020), “The Effect of the Central Bank Liquidity Support during Pandemics: Evidence from the 1918 Influenza Pandemic”, Working Paper. [20] For a model in which the distribution of excess liquidity among banks matters for the money market dynamics see Afonso, A., Armenter, R. and Lester, B. (2019), “A Model of the Federal Funds Market: Yesterday, Today, and Tomorrow,” Review of Economic Dynamics 33, pp. 177-204. [21] For an analysis of scarcity effects see Arrata, W., Nguyen, B., Rahmouni-Rousseau, I. and Vari, M. (2019), “The Scarcity Effect of Quantitative Easing on Repo Rates: Evidence from the Euro Area”, Journal of Financial Economics, 137(3), pp. 837-856; and Corradin,  https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp201123~8d9573b1b1.en.html  6/7  24/11/2020  Shifting tides in euro area money markets: from the global financial crisis to the COVID-19 pandemic  S., and Maddaloni, A.

Hamad Al-Sayari: Islamic banking prudential standards Speech by His Excellency Hamad Al-Sayari, Governor of the Saudi Arabian Monetary Agency, to the “Symposium on Islamic Banking Prudential Standards”, Institute of Banking, Riyadh, 15 January 2007. *  *  *  Ladies and Gentlemen, It gives me a great pleasure to address this honorable and distinguished attendance at this important symposium on “Islamic Banking Prudential Standards” organized by the Institute of Banking (IOB) in cooperation with the Islamic Financial Services Board (IFSB). The issue of Shari’a (Islamic Law) compliant banking is increasingly drawing attention of those concerned with financial stability, including international financial institutions such as the IMF, World Bank (WB), development banks, Basel Committee on Banking Supervision as well as supervisory authorities in the countries where Islamic banks operate. This is the result of rapid growth in the volume and scope of Islamic services offered in many countries. Those entities have shown a great interest in the growth and expansion of finance business compliant with the principle of avoiding interest and its impact and implications with respect to world markets and the global economic system. Currently, Shari’a compliant banking transactions have spread in most countries of the world through banks that totally comply with Shari’a or through Shari’a compliant windows offering all services, investment and commercial activities, leasing, investment funds and joint liability products. The Kingdom has been a forerunner country in supporting and encouraging Saudi banks to offer such products required by the Saudi market.