Firstly and most critically, future finance needs to have stronger links to the real economy by effectively having an intermediation role that is in the service to society. Financial systems have to be both value-adding and value-based – value-adding, in that they contribute meaningfully by intermediating and facilitating real economic activity, and value-based in that they aim to benefit society. Such finance that is value-adding and valuebased is deeply needed in the global economy. Many parts of the world, notably the developing world, require large amounts of funding to address infrastructure development. Financial inclusion also remains an important agenda to uplift the living standards of the marginalised segments of society in our global community. Secondly, a functioning regime practising value-adding and value-based finance needs to be built on a set of universal principles that will create a sustainable model for mainstreaming such positive finance in the global financial system. A regime that is deep-rooted in genuine productive activity that discourages excessive leverage that emphasises transparency, and that strengthens financier-client relationships would cumulatively be a positive force for the global financial system. Indeed, these are some of the core underpinnings of Islamic finance which has already garnered significance in many parts of the world. The central tenet in Islamic finance requires that financial transactions be supported by genuine economic activity, reinforcing the link between finance and value creation and aligning financial innovation to productive economic activity.

This became the bedrock upon which the Netherlands evolved to become the foremost maritime and economic power in the world during the Dutch golden age. It was also the financial revolution of pre-modern Britain that provided the foundation for the industrial revolution to take effect in the 18th to 19th centuries. A more recent observation unfolding is the experience of China, where the process of financial intermediation has been key for the infrastructure development that has propelled China’s economic growth story that began in the 1980s. In the process, it has lifted millions from extreme poverty. Though these are distinct experiences separated by chasms of geography and history, finance was a common and powerful component of the overall rise of these economies. More recently, this transformative role of finance can also be observed in  BIS central bankers’ speeches  1  the many emerging economies in different parts of the world in the 20th century as they transitioned to becoming a significant and important component of the global economy. Further, as the regional and international dimension of finance increased, this globalisation of finance facilitated greater cross border trade and investment activities. In this recent two decades however, finance has progressively evolved from being a means to an end, to being an end itself. The role of finance shifted from being an enabler of growth to an engine of growth in its own right. In the more globalised world economy, financial centres also flourished to become an important source of national income and wealth.