In the more medium term, the combination of negative demographics, low productivity growth and high levels of public and private debt constrains the euro area’s ability to regain precrisis growth rates, creating a breeding ground for disillusionment with and distrust of the European project. It is, therefore, essential that governments revive the reform momentum, to optimise the working of production factors and product markets, improve the business environment and complete the euro area governance framework. Important labour market reforms have been undertaken in recent years, especially in the countries hardest hit by the crisis. Empirical evidence shows the positive impact that those reforms have had on growth and employment. But preventing high unemployment rates from becoming entrenched and long-term unemployment from growing remain a priority. Where least progress is perceived is perhaps in reform of the product and service markets. Recent experience shows that it is important to implement the reform agenda in the right order, since early reforms, tending to enhance competition, may be vital to ensure that labour market reforms have the desired positive effects. BIS central bankers’ speeches  3  In various euro area countries, product market reforms should aim to improve the business environment, remove administrative barriers and increase competition. Revamped insolvency proceedings would help to improve management of the loan write-offs that currently place such a heavy burden on banks’ balance sheets. Insolvency proceedings, if well designed, can be an efficient way to reallocate resources to sectors and firms that offer higher growth potential.

Abdul Rasheed Ghaffour: Islamic finance and the Fiqh of crisis management Keynote address by Mr Abdul Rasheed Ghaffour, Deputy Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the 16th International Shariah Scholars Forum (ISSF) "Islamic Finance and the Fiqh of Crisis Management", 6 October 2021. * * * Assalamualaikum w.b.t and a very good afternoon to all distinguished guests and fellow participants. It is a pleasure and honour for me, to be part of what I believe will be another stimulating and thought-provoking dialogue. I would like to record the Bank’s appreciation to ISRA for hosting this annual platform, and also more broadly, for its continued dedication in advancing the frontiers of applied Shariah knowledge in Islamic finance towards greater heights and prominence. The chosen theme “Islamic finance and the fiqh of crisis management” is very apt and timely. With the persisting rage of the Covid-19 pandemic, our economic and financial backdrop is gripped with unprecedented challenges that emerged within a very short period of time – priced with great health, economic and social costs. The forecasted statistics are rather staggering, sparing no countries from economic fallout and social regress. With as many as 150 million people globally estimated to be pushed into extreme poverty by 20211, exacerbated with the fact that global unemployment is expected to hit more than 200 million people by 20222, the impact from the crisis has disproportionately affected the most vulnerable.