reflecting the downgrading of securitized products and persistent concern about possible further losses at financial institutions. the functioning of markets for securitized products has remained impaired as evidenced, for example, by continued decreases in the amount outstanding of asset - backed commercial paper ( abcp ) issued and sluggish trading of collateralized debt obligations ( cdos ). corporate bonds have been issued at a reasonable pace, but the corporate bond market is still undergoing adjustment as seen in increased issuance spreads. stock markets are still unstable, and stock prices declined substantially around the turn of the year. the volatility in global financial markets seems to reflect a market correction following the laxity in risk evaluation that had developed during the long period of benign economic and financial conditions. this adjustment is therefore expected to require some time to work itself out, and during the process financial institutions will have to bear a certain amount of losses. since summer 2007, organizations such as the international monetary fund ( imf ) and the organisation for economic co - operation and development ( oecd ) have released their estimates of the size of losses incurred from financial products related to subprime mortgage loans, but it is difficult to accurately grasp the amount of final losses, since the correction in the housing market is ongoing. financial institutions in the united states and europe have been posting considerable losses, and many have announced measures to boost their capital to compensate for these losses. how successful these measures are in helping financial institutions and the financial system to restore their credibility will need to be monitored closely. short - term funding markets in the united states and europe were under elevated pressures in late 2007 as financial institutions tried to secure end - of - year funds. to address this situation, on december 12 central banks in the major economies announced joint measures to ensure the stability of global financial markets. the federal reserve established a temporary term auction facility. under this facility program, the federal reserve can auction term funds against a wide variety of collateral, thereby providing funds with longer maturities to more financial institutions. moreover, it established foreign exchange swap lines with the european central bank and the swiss national bank, and based on this, u. s. dollar auctions were carried out in europe. the bank of england and the bank of canada actively conducted operations to provide ample term funds with maturities beyond year - end. the bank of japan and the swedish riksbank welcomed the action and issued a press release stating that they would also appropriately provide liquidity to money markets in

##map ( hetr ), and the new industrial master plan ( nimp ). for the financial sector, the joint committee on climate change or jc3 was established as a collaborative platform between the regulators and players, including islamic finance players, to build climate resilience within the malaysian financial system. through jc3, we are scaling up climate finance pilot projects such as greening value chain ( gvc ) and greening industrial parks ( gip ). these initiatives not only provide an impetus to our investment prospects, but also underscore our commitment to sustainable and inclusive practices, aligned with the government's economic framework. ladies and gentlemen, in closing, i strongly believe our forum today can pave the way to realise two main outcomes : first, stronger cross - border investment linkages that serve as catalysts for economic growth and investment opportunities ; and second, wider acceptance and use of islamic finance as a vehicle to drive our efforts to transition to a greener economy. 2 / 3 bis - central bankers'speeches i look forward to the productive discussions and meaningful collaborations that will emerge from this forum. i also wish to extend our appreciation to our partners, namely, the islamic finance council uk, thecityuk and uk islamic finance - halal economy hybrid group for their warm support in making this forum a reality. my appreciation also goes to our malaysian partners – the mifc leadership council, the malaysian high commission in london, government agencies, and industry players that have worked hard to organise this event. with that, it is my great honour to now invite his royal highness sultan nazrin shah to deliver his keynote address on " sustainable future : leading the change. " thank you. 3 / 3 bis - central bankers'speeches