the discussions today. another important issue, for example, is how home price movements are shared between the borrower and lender. home price risk is already partially borne by lenders and other mortgage investors, since a fall in home prices increases mortgage defaults and see agarwal, driscoll and laibson, 2013, “ optimal mortgage refinancing : a closed - form solution ”, journal of money, credit and banking, vol. 45, no. 4, pp. 591 – 622. according to data from the home mortgage disclosure act, there were 31. 8 million refinancings of first - lien single - family mortgages over 2008 – 2013, with an average ( median ) loan amount of $ 212, 000 ( $ 174, 000 ). for evidence on the importance of capacity constraints for time - varying margins in mortgage pricing, see fuster, goodman, lucca, madar, molloy and willen, 2012, the rising gap between primary and secondary mortgage rates, federal reserve bank of new york economic policy review, 19 ( 2 ), pp. 17 – 39. this is documented for instance in another paper presented yesterday, by andersen, campbell, meisner, nielsen and ramadorai ( 2015 ), “ inattention and inertia in household finance : evidence from the danish mortgage market ”. for evidence that lenders are less willing to originate frms if mortgage securitization markets are illiquid or frozen, see fuster and vickery ( 2015 ), “ securitization and the fixed - rate mortgage ”, review of financial studies, 28 ( 1 ), pp. 176 - 211. research presented in yesterday ’ s academic sessions finds that a bank ’ s access to external bond finance influences the composition of mortgages it originates : see foa, gambacorta, guiso and mistrulli ( 2015 ), the supply side of mortgage finance. one proposal for such innovation that would have increased pass - through during the crisis is the “ automatic stabilizer mortgage ” of eberly and krishnamurthy, 2014 ; see http : / / www. newyorkfed. org / research / conference / 2015 / mortgage _ design / eberly _ janice _ 052015. pdf. bis central bankers ’ speeches foreclosures, and associated credit losses. but a number of proposals have argued that mortgage balances should be explicitly indexed to movements in

shariah committee members in the islamic financial institutions in malaysia are currently undergoing the shariah leadership education ( sle ) programme that commenced early this year. this programme aims to provide exposure to the shariah members on the fundamentals of finance and to foster greater understanding on their roles and responsibilities in shaping the direction of islamic finance in malaysia. the objective is also to ensure that all operational, legal and shariah aspects are taken into consideration before any shariah decision is made. aspect of ijtihad in a contemporary setting the second point that i would like to share is on the aspect of ijtihad in a contemporary setting. in line with the maturity of the islamic financial industry, issues relating to shariah have also becoming increasingly complex and challenging. fundamentally, the ijtihad formed by the shariah experts need to be based on the rules and principles of islamic law. at the same time, the shariah committee members need to also examine and understand the contemporary environment that is constantly changing especially in the field of communication technology. i would like to cite the following legal maxim : which means “ the law on a matter depends on the perspective on the matter. ” states that “ the law may change over time, place and background. ” the application of this method is more evident in matters relating to ijtihad where the preservation of the benefit of the society is paramount. i always believe that when the contemporary environment and current reality are taken into consideration in any shariah research, the ijtihad will be more substantive and mature while not compromising with the principles of shariah. bis central bankers ’ speeches it is also important to stress on the need to document the decisions and resolutions of the shariah in a structured and orderly manner, supported by the richness of the debates in arriving to the decisions. this is integral as a starting point to facilitate discussions among shariah experts, either domestically and internationally to encourage greater understanding and clarity of this treasure of knowledge. it can also serve to provide guidance and culture of knowledge that can be inherited by future generations. and more importantly, opinions and justifications for a particular deduction must be documented. the spirit of mutual respect within the diversity of shariah interpretations the third point that i wish to share is fostering mutual respect in dealing with diverse shariah interpretations. differences in views and opinions among scholars are inherent in the area of shariah, particularly in fi