accountability transparency and accountability strengthen the credibility of the central bank ’ s commitment to price stability, by ensuring that the public understands that the motivation behind monetary policy decisions is the pursuit of price stability. 5. comprehensive analytical framework monetary policy decisions must be underpinned by a comprehensive analytical framework, which ensures that all relevant and available information support timely and efficient decision making in the conduct of monetary policy. the ecb ’ s two pillar strategy provides such a framework. it combines the results of the economic analysis with those of the monetary analysis. the experience from the financial crisis has demonstrated very clearly that it is not sufficient for the conduct of sound monetary policy to study short - term cyclical developments in the real economy. rather, the monetary analysis helps to identify longer term risks to price stability and supports thus the medium term orientation of monetary policy. monetary analysis can also signal financial imbalances and vulnerabilities. it is an important input in any strategy of “ leaning against the wind ”, as mentioned above. 6. separation principle generally, a clear distinction must be maintained between the determination of the monetary policy stance and the provision of liquidity to the market. this “ separation principle ” ensures that the conduct of liquidity provision is not interpreted by market participants as signalling the future course of monetary policy. technically this means that the eonia is kept very close to the main policy rate in normal times. through the adoption of fixed - rate full allotment in the longer - term refinancing operations the eonia has been deviating from the main refinancing rate and has been closer to the deposit rate. with a normalisation in financial markets the demand for excess liquidity is dropping, so that the withdrawal of non - standard measures can proceed. as a result the eonia will ultimately return to levels around the main refinancing rate. hence, the separation principle will be fully re - established. the monetary policy of the ecb is firmly grounded in this set of principles. they are partly embedded in the maastricht treaty ( in terms of : single mandate, political independence, prohibition of monetary financing ) and in our operational framework. also in a “ new normal ” environment we will continue to do everything to deliver what we have delivered so far which is, according to our mandate, price stability over the medium term. where does the ecb stand in terms of phasing out non - standard measures? using its broad operational framework, the eurosystem in a

need for the reinvention of the business model of islamic financial institutions is just as great. for about 12 months after the crisis first reached this region, there was an understandable tendency to believe that it would be just a temporary interruption to a story of strong growth. many believed that after a short period of adjustment the abundant liquidity conditions and the easy access to credit that islamic financial institutions had enjoyed in the years prior to the crisis would quickly return. the funding would be obtained to complete the major projects and end - investors would again open their cheque books. as the dust begins to settle on the global financial crisis it should now be clear this assumption of a temporary blip can no longer be sustained. it is no longer wise to base business models on the hope that the era of cheap and plentiful liquidity will soon return. the industry and regulators need to recognise that the crisis has produced a fundamental change in the global financial system. one clear result has been to make participants in the global financial markets much more cautious and risk - averse. there now seem little doubt that the days of cheap and abundant liquidity will not return for a very long time. inevitably this means that the business models of many islamic financial institutions will need to be rethought. they will need to build a more broadly - based franchise than in the past. it is very likely that there will be less scope in future for smaller niche players that provide only a limited range of services. instead, islamic financial institutions need to build diversified sources of revenue, relying not only on placement and performance fees, but also on the steady stream of income generated by such an unglamorous but essential activities as advisory services, asset management, and providing financial services to retail clients. diversification of the industry will need to go hand in hand with its consolidation. larger, more broadly - based financial institutions will be key to the emergence of an industry with more sustainable business models. as a regulator, there are a number of things that we can do to encourage this process. increasing the attention that we give to the sustainability of business models in our supervisory assessments is one of them. new regulatory requirements, modeled on the new basel iii framework, will place greater limitations on the use of leverage as well as requiring more attention to be paid to the way that illiquid assets are funded. finally, new accounting standards may bring back onto the balance sheet of financial institutions assets which have previously been treated as having been securitized