DFIs should look for like-minded partners across the public and private sector to collectively advance the national goals of achieving sustainable development. We see industry collaboration and collective action as a critical component of achieving higher, wider and more impactful societal and economic goals. This is evident through the work done under VBI where several DFIs are part of the community of practitioners or COP. The COP pools resources and expertise, enabling members to accelerate learning as well as drive several common initiatives together such as the issuance of VBI sectoral guidelines. Another important driver for sustainable finance is the need for it to be institutionalised and embraced throughout the organisation, with clear leadership or a tone from the top. This will ensure that a clear message resonates throughout the organisation of the commitment and intent that can then drive organisational initiatives, supported by the necessary infrastructure and systems to create change. With that, I wish you all a productive webinar and all the best in this important journey. 1 www.adb.org/news/covid-19-economic-impact-could-reach-8-8-trillion-globally-new-adb-report 2 4/5  BIS central bankers' speeches  2 www.worldbank.org/en/news/press-release/2020/10/07/covid-19-to-add-as-many-as-150-million-extreme-poor-  by-2021 3 news.un.org/en/story/2021/06/1093182 4 www.mckinsey.com/featured-insights/future-of-work/covid-19-and-gender-equality-countering-the-regressive-  effects 5 public.wmo.int/en/media/press-release/climate-change-indicators-and-impacts-worsened-2020 6 aibim.com/contents/upload/VBIAF_Sectoral_Guide_Palm_Oil_Public_Consultation.pdf  5/5  BIS central bankers' speeches

Islamic financial transactions have their own unique risk characteristics that need to be managed. Risk areas that are unique to Islamic finance transactions include the legal risk of losses due in the event of lawsuits and non-compliance with relevant laws, the risks associated with non-compliance of Shariah principles and the fiduciary risk arising from failure to perform contractual obligations based on the underlying Shariah principles. The introduction of new, more innovative and complex products and financial transactions enables the disaggregation and repackaging of risks in ways that has not been explored. Shariah advisors would require the collective expertise including legal practitioners, to identify and understand the permissibility of a given structure. Islamic financial institutions in turn would need to address the attendant implications. In view of the importance for Islamic finance to be supported by a robust legislative framework, the new Central Bank of Malaysia Act 2009 explicitly codifies the duality of the Malaysian financial system which shall consist of the Islamic financial system and the conventional financial system. This statement of law is supported by a comprehensive legal framework already put in place for the regulation of Islamic finance in Malaysia, encompassing the banking, takaful (Islamic insurance) and Islamic capital market industries. The legal recognition of the distinct features of Islamic financial transactions and the availability of a dispute settlement mechanism capable of applying these distinctive features reduces the legal risks as well as risk of non-compliance with Shariah principles.