a better understanding of risk interactions between conventional and islamic finance activities, and accelerates progress towards best practices based on the sharing of research, experiences and frameworks. conclusion let me conclude with a statement from this year ’ s per jacobsson lecture given by sir andrew crockett on what should guide us in our “ efforts to devise a new and stronger financial system ”. “ it should be global, it should be robust, it should be an effective servant of the real market economy ”. this is what the new islamic financial landscape has evolved to achieve. with its inherent close links to the economy and its trend towards internationalization and the robust institutional arrangements and regulatory standards being introduced and implemented, it will indeed enhance the potentials for islamic finance to not only serve the economy but to achieve sustainability in this more challenging environment. bis central bankers ’ speeches

##s, and enhanced options to resolve failed financial institutions. much progress has already been made by the islamic financial services board in promulgating an extensive set of prudential standards for the islamic financial services industry since its establishment in 2002. the ifsb has already introduced standards for capital adequacy, risk management, corporate governance and shariah governance. this important work has been significant in promoting international uniformity of the regulatory bis central bankers ’ speeches framework and international best practices for the islamic financial system in different jurisdictions. the ifsb has also established a facilitative platform to promote overall financial stability through the islamic financial stability forum ( ifsf ) that serves as an avenue for cross - border engagement amongst regulators. the important goal of strengthening the foundation of the global islamic financial system has also been reinforced further following the recent global financial crisis, through the work of the ifsb - idb task force of islamic finance and global financial stability. in its report that was released in 2010, eight building blocks were identified to manage potential risks and vulnerabilities to the islamic system. these include steps that need to be taken for the implementation of the prudential standards ; the development of a liquidity management infrastructure ; the introduction of strong financial safety nets ; the development of an effective crisis management and resolution framework ; the development and implementation of accounting, auditing and disclosure standards ; the formulation of an effective macro prudential framework ; the development of credible credit rating institutions and processes ; and finally, to strengthen efforts for capacity building and talent development for the islamic financial services industry. following these recommendations, this year, the international islamic liquidity management corporation ( iilm ) was established to strengthen the liquidity management of islamic financial institutions. this initiative represented a collaboration between 10 central banks and 2 multilateral development institutions. its aim is to enhance the availability of liquid shariah - based islamic financial market instruments – a crucial step in promoting more efficient cross - border liquidity management for islamic financial institutions to support increased cross - border flows. cumulatively, these efforts will build a solid foundation for the orderly growth and development of islamic financial system that will contribute to its continued resilience and the overall stability of the global financial system in a way that better serves households and businesses. going forward, it is important that the international standard setting process allows and continues to promote the more effective integration and exchange of perspectives between islamic and conventional finance to ensure a coherent global framework that is consistent across similar risks, promotes