that with more well - informed and financially astute consumers making better financial decisions, competition is promoted among the financial service providers. moreover, market efficiency would improve with the creation of new products and services that are more responsive to the requirements of consumers. in relation to this, financial literacy has become a vital skill in this increasingly more complex financial world, characterised by increasingly sophisticated financial products and services and growing diversity in financial service providers and distribution channels. while the overarching objective of consumer education is to impart knowledge that will improve consumers'financial decisions, it cannot be assumed that equipping consumers with more information will automatically lead to improved financial behaviour. research has shown that consumer decisions may not always be made based on sound advice and knowledge, but are at times made on impulsive intuition. the key challenge lies in determining how behavioural factors and other factors such as socio - economic and cultural backgrounds, life events and skill levels influence rational decision - making. the wide variation in information needs that arise from differences in prior experience, language and cultural background, current financial situation, and competing demands for consumers'time all pose challenges in the development and delivery of relevant information to consumers. in particular, the most effective means of engaging consumers that have a low level of interest in financial planning needs to be determined. in relation to this, financial service providers need to provide consumers with information that accurately represents the features, risks and returns associated with their products and services and demonstrate integrity and good faith by offering products and services that are appropriate to the customers'financial needs and circumstances. the issue is how a consistent and comprehensive disclosure regime could be established, with the flexibility to apply differentiated rules in response to different situations and circumstances. finally, disclosure as a consumer protection tool will only serve its purpose if consumers are able to understand the information provided. the challenge is to get the right balance between providing sufficient information to consumers to make informed choices, with the information being clear, concise and effective. the increase in the number of delivery channels has not resulted in an equitable expansion in the access to financial services. even in developed countries, there remains minorities that have limited access to basic financial services. for instance, a study conducted in the united kingdom for the period 2002 - 2003 found that 2. 8 million adults in households had no access to a bank account. in relation to this, regulators have to balance between the need for financial institutions to operate efficiently and the need to ensure access to basic financial services for both individuals and small

zeti akhtar aziz : building a sound global islamic financial system opening remarks by dr zeti akhtar aziz, governor of the central bank of malaysia ( bank negara malaysia ), at the islamic financial services board ( ifsb ) – meet the members & industry engagement session, kuala lumpur, 28 january 2016. * * * it is my pleasure to welcome you to this industry engagement session organised by the ifsb. since its introduction in 2012, these sessions have drawn encouraging response from the members and the industry. such an interface between the regulators, industry and the ifsb has become even more important in the current environment in which greater global attention is being accorded to the reform of prudential regulations. the strengthening of such an interface provides an important platform for building greater understanding on the expectations, issues and areas of concern amongst the regulators, the industry and the ifsb. with more than a decade since the inauguration of the ifsb in november 2002, the ifsb has built a solid global reputation as a prudential standard - setting body for islamic finance. its achievements also include initiatives to increase international regulatory cooperation, to encourage uniformity of regulatory frameworks and the efforts to enhance the monitoring of financial risks in the islamic financial system. the enhanced stability and resilience of the current global islamic financial system is reinforced by its vibrant growth and its increasing internationalisation and integration into the international financial system. this is a realisation of the aspirations and vision of the ifsb founding members. the ifsb has also made significant advancements in taking forward the recommendations made in the islamic finance and global financial stability report 2010 towards achieving financial stability in the national and the international islamic financial system. the prudential standards including that for liquidity management issued by the ifsb takes into account the unique characteristics of islamic finance and are also designed to not impose any regulatory burden while upholding the financial stability agenda. the effective implementation of the standards issued by the ifsb is key towards promoting the soundness and stability of islamic financial institution. to enhance this prospect, the ifsb has strengthened its role in facilitating greater jurisdictional preparedness in the adoption of these standards through the provision of technical assistance to its members. malaysia is one of the jurisdictions that has adopted and operationalised the prudential standards and the guiding principles that have been issued for the industry. the implementation of these standards and guiding principles support the regulatory framework that we now have in place in our islamic financial system. as the industry is