John Law saw the possibility of printing banknotes to finance promising development projects in the New World. Excessive confidence in the potential for profits fuelled both the printing presses and equity prices in Paris. The bubble burst and John Law fled to Italy.24 Today, the  24  Government debt in France had reached enormous proportions after the Spanish War of Succession (1702–1713). After the death of Louis XIV in 1715, John Law persuaded the French authorities to convert government debt into equity capital in the Compagnie d’Occident, also known as the Mississippi Company. The company was awarded exclusive rights to develop the French territories in North America and a number of trade privileges. Banque Générale was taken over by the state, given the name Banque Royale, and later merged with Mississippi Company. John Law was appointed Contrôleur Général des Finances and now controlled in practice France’s finances and all trade between France and countries outside Europe. Banque Royale was given unlimited rights to issue banknotes (livres tournois). This was the first time paper money had been issued in France. The banknotes were made legal tender and the bank was given the right to collect taxes. An increasing number of stocks in the Mississippi Company were issued against government debt or paper notes issued by the Banque Royale. This led to a speculative bubble and new rounds of share issues. The value of the shares rose twentyfold in the course of 1719 and the number of millionaires rose sharply.

Indeed, the Islamic financial services industry in Malaysia has experienced robust growth in addition to being reinforced by enhanced market discipline and transparency, and the vibrancy of the Islamic financial market developments in Malaysia. The latest financial indicators show that the Islamic banking industry remains well-capitalised with a risk-weighted capital ratio of 14.8% as at end-August 2006, while the net non-performing financing ratio has declined to 4.2%. Clearly, therefore, the industry is strong, resilient and well-positioned to meet emerging challenges and to capitalise on new opportunities for the mutual return of its stakeholders. Secondly, this partnership comes at a significant juncture when Malaysia is enhancing the international dimension of its Islamic banking and financial market, with the introduction of increased foreign participation. In line with the aspiration to position Malaysia as an international Islamic financial centre (MIFC), new licences and business divisions to conduct international currency Islamic banking business, tax and other incentives have been introduced to attract global Islamic financial institutions to make Malaysia the hub for their regional business operations. These measures and incentives are also expected to attract international investors, including from the Middle East, to leverage on Malaysia as an investment gateway to tap the rapidly growing investment opportunities in the East Asian region. Thirdly, this partnership also serves to enhance Malaysia as a centre of product innovation in Islamic finance. Indeed, conscious efforts have been made to ensure a conducive environment for innovation in Malaysia, including the development of the necessary pool of expertise and talent to drive such innovation.