From a broader perspective, the financial industry, both in our region and globally, is under pressure from four powerful currents: Rapid development of information technology, which has created opportunities for financial innovation and has challenged classical banking models. New payment and credit instruments, new financial market actors, and new business models, such as digital and electronic banking and payments, boost the penetration of financial services. Conversely, they challenge not only classical actors of the financial sector but also its regulators. Globalisation, which has expanded the scope of market actors and regulators. This phenomenon significantly exposes emerging economies to volatility in the regulatory framework or in the risk appetite in advanced economies. Re-regulation, currently underway in the financial system in Europe and globally. This process is aimed at enhancing security in the banking sector, lowering the probability of systemic crisis, and enhancing the capacities of authorities for managing them. However, it imposes additional costs on the banking sector and places it under less favourable conditions vis-à-vis other market participants. Very low interest rates that characterise many segments of the global financial market. 3/4  BIS central bankers' speeches  These rates reflect the accommodative monetary policy stance adopted by major central banks, the decline in global productivity and unfavourable demographic developments in advanced economies. These have a toll on the balance sheets of broader segments of the financial market such as banking sector, pension funds and insurance companies. From a nearer-term perspective, Albania needs to improve financial literacy, across the board.

I would like to congratulate the Islamic Banking and Finance Institute of Malaysia (IBFIM) and the Malaysian Green Technology Corporation (MGTC) for organising this conference, given the global surge in green technology activities as catalysts for sustainable developments. The aims of this forum are to narrow the gap of Islamic financial institutions’ understanding on green technology and to provide green technology companies with the latest information on Islamic financing products and services. It was almost a year ago that I spoke at a similar Conference outlining on how the financial systems can play a catalyzing role in the development of green technology. I mentioned a number of broad key priorities and I am pleased to announce that encouraging progress has been made. Today, my remarks place emphasis on the current and future prospects of Islamic financing solutions that can support the vibrancy and dynamism of the green technology ecosystem. In Malaysia, Islamic financial institutions can leverage on the large untapped opportunities in the green technology sector and at the same time contribute towards the country’s transformation into a high value-added economy. Increasing global importance of green technology Against the backdrop of current climate and environmental concerns that are the consequence of unsustainable economic activities, green technology emerges as a winning proposition. Green technology has strong potentials to stimulate economic growth while mitigating environmental degradation. National and international efforts to promote green technology as a new source of growth have intensified in recent years.