There has also been greater international dialogues between global Shariah scholars through several platforms and structured forums. This greater engagement facilitates convergence in interpretation and the greater leverage on technology for the active dissemination of information at real time further facilitates the harmonisation process. The next stage however is the need for more efficient information dissemination that would promote greater market transparency, price discovery and industry insights. The development of the Islamic Financial Knowledge Repository Portal by ISRA that will be launched today will be an important effort that can contribute to meeting this objective. As a knowledge database it centralises Shariah rulings and its justifications, legal and regulatory requirements. This is enriched by the latest collection of research and development in Islamic finance. This database will become an important source of reference and guidance for Shariah and industry practitioners, policy makers, researchers and academicians. This initiative by ISRA will not only promote greater understanding but mutual respect and recognition of Islamic finance. Concluding remarks The global Islamic finance industry is transitioning to its next stage of development and will stand to benefit from an enhanced universal appeal with a wider consumer and business segment, greater financial inclusion and harmonisation through increased research and development and more effective dissemination of information. A strong culture of applied research and development in Islamic finance that promotes innovative financial engineering, through practical and useful applied research findings is an integral part of industry-building efforts to support the industry’s growth.

Regarding transparency, I would signal the initiatives taken by the Banco de España, which have been favourably viewed by the European and international authorities and by the markets, on relevant exposures and refinanced loans. And mention should be made of the guidelines on accounting practices in respect of refinanced loans. Finally, I wish to underscore the approval of Law 9/2012 of 14/2012 on the restructuring and resolution of credit institutions. To a most significant extent, this legislation stole a march on the future Directive that will regulate these processes in Europe. Spanish banks’ solvency position has improved clearly in 2013. The average core capital in our banking system will stand at around 10.5% as at December 2013, more than 1 pp above the related figure a year earlier. And, at the same time, exposure to the real estate sector has diminished drastically. Our banks may face the asset quality analyses and stress tests to be conducted by the ECB before the effective implementation of the Single Supervisory Mechanism in November 2014 from a sound position. Conclusions Allow me to conclude. With all due caution, the data available allow us to think that we may be at the start of an economic recovery in the EU and in Spain. This will never be  4  BIS central bankers’ speeches  something mechanical, but rather the result of a major effort to correct the serious imbalances that our economy built up in the period to 2008.