participated in the causal factors of the current international financial turbulence and this, together with its financial soundness, puts it in a favourable starting position. however, we live in a global world, and the good work done so far is no antidote to the risk of turbulence. indeed, the most effective way of limiting the materialisation of these risks in the spanish banking system, and in the spanish economy, is to acknowledge that we are not immune to them and, based on this premise, to work together to take the decisions that will enable us to meet the current challenges. i have no doubt that this is the spirit shared by all those of us who in one way or another have some responsibility in this field. thank you.

zeti akhtar aziz : islamic finance and financial stability opening remarks by mrs zeti akhtar aziz, governor of the central bank of malaysia, at the bnm high level conference on financial stability, bank negara malaysia, kuala lumpur, 24 november 2009. * * * it is my great pleasure to welcome you to bank negara malaysia conference on financial stability that is being held in conjunction with 15th ifsb council meeting and the 3rd ifsb public lecture on financial policy and stability. this conference takes place at a time when there has been intense discussion by the international community on the necessary financial reforms at both the national and international level so that we will avoid such global crisis of such a scale in the future. this conference today provide us with an opportunity to reflect on the new challenges that are emerging from this global financial and economic crisis and discuss islamic finance and the need to ensure not only its resilience but how it might contribute to global financial stability. indeed, islamic finance has a potential role in contributing not only to global financial stability but also towards a more balanced global growth. while islamic finance by its very nature and its direct link to economic activity contributes to this process, the recognition of the new financial challenges ahead require further steps to be taken to strengthen its resilience and robustness. in recent months, there have been increasing evidence of strong gains, a rebound in the financial markets with renewed interest in emerging market, active capitalization by banks, and the reopening of wholesale funding markets. while the malaysian financial system has fared relatively well throughout this global crisis and remaining financially sound, well capitalised and able to withstand the current challenging global financial environment, there are however, many lessons that we can learn from the current international financial crisis to ensure the sustainability of this resilience. the development of islamic finance in malaysia that operates in parallel with conventional finance for almost three decades now has demonstrated its sustainability as a form of financial intermediation. today, the islamic banking system has emerged as a vibrant financial system with islamic banking assets currently accounting for 18. 8 % of the total banking assets of the malaysian financial system. the product range has now expanded into an extensive range of innovative instruments while in the islamic capital market, the sukuk market has surpassed the conventional market in terms of market share. an important aspect that has contributed to financial stability in the overall financial system is the conscious policy to develop a more diversified financial system that allows for the diversification of risks. potential