work closely with market participants in the coming year to facilitate the development of market - based mechanisms which demonstrably embed the global code within firms ’ culture and practices. these mechanisms need to be sensitive to existing law and regulation and to the diverse nature of fx markets globally. hence a ‘ one size fits all ’ approach to adherence would not be appropriate. we need to strike the right balance between respecting the existing diversity across different markets, and establishing globally consistent and effective adherence mechanisms. the success of the global code in promoting integrity and restoring confidence in the wholesale fx market lies in the hands of its participants. that is why the global fxcs issued a joint statement of support at the launch of the code in new york, making clear their intention for the global code to become an integral part of the wholesale fx market. 7 furthermore the bis central banks signalled their commitment by announcing that they themselves will follow the code, and that they expect that their counterparties will do so too. 8 http : / / www. bis. org / mktc / fxwg / am _ may16. pdf. http : / / afxc. rba. gov. au / news / afxc - 26052016. html. http : / / www. bis. org / press / p160526a. htm. bis central bankers ’ speeches we are also talking to regulators in our various countries as to how they might use the code in monitoring market conduct. we are on track to complete the code so that it will be released following the global foreign exchange committee meeting in london in may 2017. at the end of that process, for the code to be effective and for it to achieve what we want it to achieve, it will need to be accepted and endorsed by the fxcs and market participants more generally. that said, the process does not really end, because as the foreign exchange market continues to evolve, the code will need to evolve with it. conclusion that, i trust, gives you a reasonable overview of the state of play on the global code. a lot of work has been done to get us to this point. there is still work to be done to complete the task. the work to date has reflected a very constructive and cooperative effort between the central banks and market participants. all of us recognise the need to restore the public ’ s faith in the foreign exchange market and the value of the global code in assisting that process and also in helping improve market functioning

but goes beyond, the predominant objective of enhancing shareholder value. in delivering long term sustainable value, allocative efficiency is achieved in a manner that promotes stability and prosperity in the broader economy and sustainability of the environment. above all, responsible finance aims to optimise its positive impact on society, economic wellbeing and development. over the recent decade, the heightened advocacy for ethical and socially responsible investments has also seen the proliferation of financial instruments that cater for both financial and societal objectives. more importantly, this has moved beyond negative screening, to more impactful approaches involving the adoption of environmental, social and corporate governance ( esg ) considerations in investment and business practices. these have served to align risk and reward in a more sustainable manner. indeed, some global banks and insurers have begun to incorporate sustainability considerations, including environmental concerns in their lending and investment decision - making processes via the adoption of international risk management frameworks such as the equator principles and the unepfi principles for sustainable insurance. these positive forms of finance are increasingly becoming powerful market forces, driving focus into the kind of productive activities needed for long - term growth. bis central bankers ’ speeches islamic finance, a well - established component of responsible finance, is similarly gaining significant growth and prominence in the global financial system due to its inherent orientation towards promoting societal welfare. this includes the propagation of strong ethical values that engenders accountability and trust in its intermediation function, as well as the promotion of risk sharing that fosters entrepreneurship and equitable distribution of wealth. by virtue of its requirement for financial transactions to be supported by genuine productive activities, islamic finance is also deeply rooted to the real economy. all these are hallmarks of islamic finance that underpin greater market discipline and stronger focus towards building sustainable and long term value in capital allocation. collectively, these characteristics enable islamic finance to also serve as an effective model for responsible finance. on the path to achieve stronger, more balanced and sustainable growth, the potential of responsible finance has therefore become greater than ever. most important is for finance to be aligned towards its ultimate goal of serving humanity and of uplifting social wellbeing. thus, more than merely performing its role as a passive intermediary of funds, finance today has the distinct potential of catalysing and shaping social outcomes. as mobilisers of funds towards socially empowering activities in the economy, the financial sector can act as a " social multiplier ", significantly expanding the impact of positive finance. this is what