identify in particular systemic institutions ; second, addressing legal issues in the development of the new supervisory processes at ssm level ; third, preparing a harmonised supervisory data reporting framework ; fourth, developing a supervisory model bis central bankers ’ speeches and manual ; and fifth, designing and implementing the balance sheet assessment required by the ssm regulation. let me be clear about the importance of that fifth workstream. a credible and thorough balance sheet assessment is an indispensable step towards restoring full confidence in the banking system. transparency on asset valuation is necessary to subsequently assess the capital position of banks and also to facilitate market transactions on bank assets. the balance sheet assessment will be complemented by a stress test, in coordination with the european banking authority, that will cover all banks supervised directly by the ecb. we expect to conclude the comprehensive assessment when the ssm becomes operational. it is crucial to have a commitment to ensure that effective backstops are available, in order to ensure that the assessment is duly and timely concluded. a second cornerstone of banking union is the bank recovery and resolution directive ( brrd ). by providing the tools and powers in national laws, it will form a basis on which to build a single resolution mechanism ( srm ). the ecb welcomes the fact that an agreement on brrd was reached at the last ecofin meeting. i trust that this parliament, together with the council, will reach an agreement by the end of this year. this will in turn pave the way for a swift entry into force of the european stability mechanism ’ s direct bank recapitalisation instrument. we welcome the political agreement reached at the last eurogroup meeting. this instrument will usefully complement the existing european backstop and will contribute to the further decoupling of banks from their respective sovereigns. a single resolution mechanism is the next crucial pillar of the banking union. it is an indispensable complement to the single supervisor and should ideally be in place once the ssm is operational. the ecb looks forward to the commission ’ s proposal for an srm with a strong single resolution authority at its heart and a single resolution fund at its disposal. thank you for your attention. i am now looking forward to your questions. bis central bankers ’ speeches

of the core underpinnings of islamic finance which has already garnered significance in many parts of the world. the central tenet in islamic finance requires that financial transactions be supported by genuine economic activity, reinforcing the link between finance and value creation and aligning financial innovation to productive economic activity. additionally, the emphasis on risk - sharing in islamic finance strengthens the incentives for participants to screen and monitor transactions for economic viability and risks, and to institute the governance process. in malaysia, our efforts to widen the reach of such value - adding and value - based finance include the development of a multi - bank platform to match funds from potential investors with entrepreneurial ventures in the real sector. thirdly, the efforts to strengthen the supply and demand of value - adding and valuebased finance would contribute significantly towards re - anchoring the global financial system to the real economy. on the supply side, the focus on professionalism, ethics and the quality of talent would contribute to drive for positive changes in the financial services industry. in malaysia, we have initiated the financial services professional board, launched in 2014, comprising of an independent group of eminent experts from around the world is currently refining a voluntary code of ethics that may be internationally applicable across the financial services industry. a meaningful change in the culture of financial institutions requires a true commitment from the industry. a display of such commitment through the measurement and disclosure of a financial institution ’ s non - financial performance, such as its impact in social, environmental and governance metrics, can be a powerful tool for change. in malaysia, such a proposal is being developed for islamic financial institutions to disclose their corporate value - intent, a performance measure their commitment to value creation. greater consumer activism and bis central bankers ’ speeches demands for more consumer - focused corporate information reflects the increased demand by consumers for institutions to account for their behaviour and values. in terms of the demand for ethical and responsible finance, greater awareness among consumers and investors on the availability and viability of such positive finance is also needed, including among governments, corporates and the retail market. education, engagement, incentives and the alignment of legal and regulatory frameworks on the utilisation of such finance will be important to achieve this. finally, is the need to foster strong leadership at the global level that can have an advocacy and facilitative role in resolving barriers and bringing together different stakeholders to work together in a coordinated and cohesive manner. the responsible finance institute, initiated as a think tank based