3  0% 5 - completely trustworthy  (a) Based on survey responses of over 130 investors carried out in H1 2012, of perceptions over the previous year. BIS central bankers’ speeches  0 Up  Not changed  Down  Source: Barclays Capital. (a) Based on survey responses of over 130 investors carried out in H1 2012, of perceptions over the previous year. 13  References Admati, A and Hellwig, M (2013), The Bankers' New Clothes: What's Wrong with Banking and What to Do about It, Princeton University Press, Princeton, USA. Aikman, D, Deb, P, Farag, F, Madouros, V, Neumann, T, Saporta, V and Wagman, K (Forthcoming), ‘Has the Quest for Risk Sensitive Capital Requirements Achieved its Aims?’. Babel, B, Gius, D, Gräwert, A, Lüders, E, Natale, A, Nilsson, B, Schneider, S (2012), ‘Capital Management: Banking’s New Imperative’, McKinsey Working Papers on Risk, No 38. Basel Committee on Banking Supervision (2013), ‘Regulatory Consistency Assessment Programme: Analysis of Risk-Weighted Assets for Market Risk’, available on: http://www.bis.org/publ/bcbs240.pdf. Berger, A and Bouwman, C (2013) ‘How does capital affect bank performance during financial crises?’, Journal of Financial Economics. Blum, J (2008), ‘Why Basel II may need a leverage ratio restriction’, Journal of Banking and Finance, 2008, Vol 32, Issue 8, pp 1699–1707. Blundell-Wignall, A and Atkinson, P (2011), ‘Global SIFIs, Derivatives and Financial Stability’, OECD Journal: Financial Market Trends, Vol. 2011, Issue 1. Blundell-Wignall, A and Roulet, C (2013), ‘Business models of banks, leverage and the distance-to-default’, OECD Journal: Financial Market Trends, Vol. 2012, Issue 2.

The industry has now not only achieved a market share beyond the target of 20 percent by the year 2010 as was envisioned in the Financial Sector Masterplan, but it has also met the increasing and differentiated demands of the economy through the range of financial product offerings in Islamic banking, takaful and Islamic capital market segments. The initiatives taken to develop the Islamic financial system has aimed to build a comprehensive financial sector that operates at the highest efficiency and with an outreach that would extend beyond domestic and regional markets and thus facilitate greater cross border economic linkages. In advancing to the next level of growth and development, the Islamic Financial Services Act 2013 (IFSA) now provides the industry with the foundation to transition into its next stage of development. The Act takes into account the specificities of Islamic finance while ensuring a robust governance of an end-to-end Shariah compliant regulatory framework. It also provides an enabling environment for Islamic banks to diversify their business through the offering of investment accounts as an alternative means of raising funds from the public. With this, Islamic banks are allowed to pursue their role as investment intermediaries in which the alternative modes of risk-sharing contracts can be applied for the investment account. This new categorisation of deposits under the new Act has now been fully observed since mid2015 with the effective reclassification of deposits to either being Islamic deposits or investment accounts.