The DGI set out four broad objectives: (1) Better capture the build-up of risk in the financial sector, (2) improve data on international financial network connections, (3) monitor the vulnerability of domestic economies to shocks, and (4) improve the communication of official statistics. Across these four objectives twenty specific recommendations were developed.5 In particular, the DGI effort included developing a centralized data center to pool relevant data for all globally systemically important banks (GSIBs).6 Implementing the DGI agenda involves more than simply defining common data templates and retooling bank information systems to populate these templates. Rather, what is required is a deeper cultural change in how supervisors operate and interact with each other. This transformation takes time and involves a process of building mutual trust. To date, a new data center has been established at the Bank of International Settlements (BIS) that is receiving data on G-SIB institution-to-institution counterparty credit exposures. Work is underway to expand this data collection to include institution-to-institution funding dependencies, with additional work to follow on institution-to-aggregate credit and funding. Home supervisors contributing data to the BIS data center are receiving reports based on an analysis of the pooled data. Supporting this collaborative initiative is a multilateral framework signed by all of the participating supervisors that details confidentiality requirements, data sharing, and governance arrangements. As this effort moves forward, the data will be available to support both enhanced micro-prudential supervision and macro-prudential supervision. More work, though, needs to be done to facilitate a comprehensive data view of the important financial markets.

Government facilitative policies are also an important enabler to accelerate the growth and support the development of the industry. Apart from establishing strong legal and Shariah framework, the Government has also laid down conducive tax legislative that accords tax neutrality treatment for  BIS Review 115/2006  1  Islamic finance transaction. The recent initiative to position Malaysia as an International Islamic Financial Centre, will further spur the business environment thus contribute to create more conducive landscape. This initiative will bring in more players, enhance competition and encourage new diversified products and services, especially in international currencies. This rapid growth and positive performance achieved thus far signifies one of our major accomplishments over the last two decades in Islamic banking and finance. The robust growth of Islamic finance industry today augments the collaborative efforts within the industry to move in tandem to strengthen the position of Islamic finance in Malaysia. As Islamic banking and finance in Malaysia journeys towards global integration and international acceptance, there are key areas in the banking industry that needs to be enhanced to progressively support future development moving forward. Of importance, is the need to effectively engage other stakeholders through various means and approaches including promotional activities and strategies. It is imperative that the approaches adopted to be dynamic and innovative so as to ensure consistency and relevancy with the rapid development of the industry. The KLIIFEX 2006 is well-positioned to be the platform to effectively engage with key stakeholders; i.e. consumers, relevant agencies, scholars and intermediaries.