the negative rate will also apply to reserve holdings in excess of the minimum reserve requirements and certain other deposits held with the eurosystem. second, in order to support bank lending to households and non - financial corporations, excluding loans to households for house purchase, we will be conducting a series of targeted longer - term refinancing operations ( tltros ). all tltros will mature in september 2018, i. e. in around 4 years. counterparties will be entitled to borrow, initially, 7 % of the total amount of their loans to the euro area non - financial private sector, excluding loans to households for house purchase, outstanding on 30 april 2014. lending to the public sector will not be considered in this calculation. the combined initial entitlement amounts to some €400 billion. to that effect, two successive tltros will be conducted in september and december 2014. in addition, from march 2015 to june 2016, all counterparties will be able to borrow, quarterly, up to three times the amount of their net lending to the euro area non - financial private sector, excluding loans to households for house purchase, over a specific period in excess of a specified benchmark. net lending will be measured in terms of new loans minus redemptions. loan sales, securitisations and write - downs do not affect the net lending measure. the interest rate on the tltros will be fixed over the life of each operation, at the rate on the eurosystem ’ s main refinancing operations ( mros ) prevailing at bis central bankers ’ speeches the time of take - up, plus a fixed spread of 10 basis points. starting 24 months after each tltro, counterparties will have the option to make repayments. a number of provisions will aim to ensure that the funds support the real economy. those counterparties that have not fulfilled certain conditions regarding the volume of their net lending to the real economy will be required to pay back borrowings in september 2016. in addition, the governing council decided to extend the existing eligibility of additional assets as collateral, notably under the additional credit claims framework, at least until september 2018. third, the governing council decided to intensify preparatory work related to outright purchases in the abs market to enhance the functioning of the monetary policy transmission mechanism. under this initiative, the eurosystem will consider purchasing simple and transparent asset - backed securities with underlying assets consisting of claims against the euro area non - financial private sector, taking

shamshad akhtar : islamic finance – emerging challenges of supervision speech by dr shamshad akhtar, governor of the state bank of pakistan, at the 4th islamic financial services board summit, dubai, 15 may 2007. * i. * * background diversification and structural transformation in financial sector has been accompanied by increasing integration among different segments of the financial sector. the traditional boundaries between banks and non - bank financial institutions are eroding and we are witnessing the growth of universal banking and / or mergers among different segments of sectors. this trend has its benefits but has associated risks as well. supervisors face a dual challenge. on one hand, supervisors are promoting financial diversification and consolidation to achieve market development and innovation. on the other hand, supervisors have to position themselves to recognize the new dimensions and types of risks and encourage appropriate risk mitigation. these considerations have triggered world wide debate on how to effectively supervise different segments of financial sector in conglomerate and universal structure. so far these debates had been concentrated around conventional banking but now it is widely gripping the world of islamic finance ( if ). stronger inter - dependencies among different segments of if are emerging largely because islamic financial institutions ( ifis ), in principle, have features and inherent characteristics and more compulsion, than conventional banking, to conform to universal banking or to evolve inter - linkages among different market segments. ii. factors driving cross - sector linkages and interdependencies first and foremost, ifis ’ depositors / borrowers desire to conduct financial transactions that are shariah compliant. it can be assumed that a person preferring to bank with an islamic bank will also seek to use other faith - based financial services such as takaful and islamic mutual funds. this faithdriven feature in itself forces and incentivizes ifis to offer, along side bank - based services ( i. e. deposit and loans ), a wide range of financial services. as a result, islamic banks end up undertaking non - core banking activities such as fund management, capital market operations, securitization, leasing, and housing finance. this has enhanced the degree of integration between various segments of if. for example : islamic banks are likely to be strongly integrated with the shariah capital markets since on credit portfolio side, islamic banks do not have the same investment avenues as those available to their conventional counterparts. the outcome is that islamic banks either end up taking large exposure in the capital markets directly or acquire subsidiaries which