The Islamic financial system continues to grow – at a pace faster than the conventional system. As at end-June 2019, financing outstanding of Islamic banks expanded at 8.6 percent compared to 2.1 percent for the conventional. Meanwhile, new general takaful contributions grew at 16.4 percent compared to 6.2 percent for the insurance premium. However, new family takaful contributions grew at 10 percent, slightly lower to life insurance premium of 15.4 percent. This brings me to the point on impact. Financial institutions, through its intermediary actions, can be an effective agent of change for businesses and economy. In 2018, a number of Islamic financial institutions began adopting a change in their business philosophy. By embracing valuebased intermediation or VBI, more comprehensive financial solutions, beyond just financing, are provided. These may include assistance and advisory as well as capacity building opportunities to businesses in their journey to transition to a more efficient, environmentally friendly and sustainable business as part of financing. To illustrate, Islamic financial institutions will play greater nurturing role in advocating sustainable practices among their client. They will drive programme with other strategic partners who share similar aspirations to provide services beyond financing. Clients will be advised to adopt sustainable practices for example Malaysian Sustainable Palm Oil Certification and necessary funding and technical advises will be provided to the clients accordingly. Traditional credit standards are also being reformed – taking into consideration prospects of a proposed project to create positive impact on wider stakeholders and community.

Jörg Asmussen: Stability guardians and crisis managers – central banking in times of crisis and beyond Distinguished lecture by Mr Jörg Asmussen, Member of the Executive Board of the European Central Bank, at the House of Finance, Goethe University, Frankfurt am Main, 11 September 2012. *  *  *  Ladies and Gentlemen, It is a great pleasure to be here today at the Institute for Monetary and Financial Stability and I would like to thank Prof. Siekmann and Prof. Wieland for their invitation. I know that the Institute was founded in November 2007, only three months after the outbreak of what would become the worst financial and economic crisis of the post-war period. Truly timely, I would say. The Institute’s objective to highlight the significance of monetary and financial stability impressively reflects the practise and the challenges of monetary policy over the last five years. Let me in today’s remarks take the opportunity to reflect on the double role of central banks as stability guardians and crisis managers. Had I been here before August 2007, this title would have mainly implied discussing the central banks’ role as guardian of price stability. But there cannot be stability without adequately managing the crisis. So, why have central banks assumed such an important role in crisis management? Well, responding to the sudden financial tensions, central banks crisis measures have contributed to calming and avoiding highly detrimental feedback loops between financial markets and the real economy.