the central bank to develop islamic finance spans over three decades. the invaluable contributions by earlier governors of the central bank laid the foundations for the development of an international islamic financial centre in malaysia, serving both global and domestic demand. their visionary leadership in this journey not only ensured that our fundamentals were strong, they had significantly raised the global profile of islamic finance with malaysia setting an example that would encourage development in other countries. in the early 1980s, governor abdul aziz taha has laid down the foundations for the establishment of the first islamic bank and the issuance of the first government sukuk. the dual financial system that we see in malaysia today is the realisation of the vision framed by governor jaffar hussein way back in 1990. from there on, we continued to advance on many fronts, including the establishment of the shariah advisory council under the leadership of governor ahmad don. significant milestones were achieved with governor zeti at the helm of the central bank. during this period, islamic finance morphed from a niche segment into the financial mainstream, and from a largely domestic - centric focus to one of bis central bankers ’ speeches global relevance. in particular, her immense contributions have enabled us to achieve much more to expand the frontiers of islamic finance as a global community. i wanted to take the opportunity today to acknowledge their tremendous contributions. moving forward, the bank will continue to build upon these foundations in making advancement that will further strengthen islamic finance ’ s growth trajectory. in the same way that past efforts have delivered solid growth in the industry and significantly enhanced islamic finance potential for future growth, our present actions will largely determine the future prospects of islamic finance. as was the case in the past, we will continue to require innovative solutions and collaborative strategies to take islamic finance to the next level of development. positive transformations taking place around us will continue to pave the way for new growth opportunities for the industry. collectively, we need to understand these developments and leverage on them to advance economic and social goals, and manage the attendant risks. today, i would like to touch on three key issues, the rise of fintech and its impact on islamic finance, the growing importance of responsible, inclusive and sustainable finance and the preconditions necessary to sustain a value - based financial system. one of the most significant transformational developments of our era is the technological revolution. more specifically, the fintech revolution was made possible by maturing social, mobile and cloud technologies. the digital revolution

low, despite millions already at risk from the effects of climate change and in need of assistance to cope with the effects. for example, in the agriculture sector, resources can be channelled towards building flood defences, and developing local structures and facilities that are more resilient to harsh weather conditions. takaful solutions also have an important role in strengthening resilience against climate events. these developments are likely to see important changes to the way financial institutions make decisions, and to the characteristics of banking and takaful portfolios. in supporting these changes, two new tools will be published by bank negara malaysia today for public consultation – a vbi impact assessment framework ( vbiaf ) and the vbi scorecard. the assessment framework provides guidance on the assessment of financing and investment applications taking into consideration economic, social and environmental impacts, while the scorecard supports the implementation of performance measurement frameworks for islamic financial institutions that drive positive value and impact on society and the environment. i look forward to receiving constructive feedback from the industry and interested parties, and to further strengthen these frameworks to drive a renewed focus on sustainable financial solutions. key message 2 - rethinking risk the second imperative calls for a re - thinking of risk by islamic financial institutions. nontraditional forms of risks such as social, political and environmental risks are business threats that simply cannot be ignored. research indicates that there are material benefits to managing these risks more proactively. an ifc survey of global banks showed that around 86 % of respondents which integrated social and environmental risks in their business have yielded positive business results. there are also growing calls by shareholders for financial institutions to play a more proactive role in the sustainability agenda. i am among those who believe that the true mark of a sustainable financial system ultimately lies in the extent to which, the market ’ s and management ’ s view of risks reflect sustainability factors. in june 2017, the financial stability board published recommendations, for helping businesses disclose climate - related financial information. in the context of “ finance beyond profit ”, this was a significant development by a global standard setting body, and the broader g20 community, to encourage the provision of better information on climate - related risks and their financial impact. for many, this is both a reflection of, and catalyst for, the closer examination of risk - and impactadjusted returns, by capital and funding providers. as natural stewards of sustainable finance models, islamic financial institutions are well placed 2 / 4 bis central