in their respective countries while ensuring attention to sustaining financial stability. these developments have been particularly important to the recent intensification of the internationalisation of islamic finance which in turn contributes towards building bridges and forging greater linkages among a wider range of economies. transitioning into the next stage of growth of islamic finance it is of no doubt that we are now facing the most challenging economic and financial environment in decades. given that the pace of the internationalisation of islamic finance has accelerated during this period, it has heightened the urgency to chart the next phase of development of islamic finance to ensure that financial stability continues to be preserved and that the financial system continues to serve the economy. its resilience during the global financial crisis should not result in complacency. as we move forward, there are three key imperatives in addition to the efforts to ensure financial stability for the industry and to the continued development of the financial system. bis central bankers ’ speeches first is the need to highlight with greater clarity the value proposition of islamic finance so as to ensure that it remains a form of financial intermediation that serves the real economy and that it will continue to be a benefit to society. this requires the development of financial products and services that manifests the value propositions of islamic finance, and that such products are marketed with simplicity so as to facilitate a greater understanding of the main benefits of the products. in relation to this, islamic finance presents significant appeal to the growing socially responsible investment ( sri ), sustainable investments and ethical finance. this is particularly relevant in the context of the recent global financial crisis. it has brought to the forefront the need for the financial system to be linked to the economy and for the need for greater and improved levels of transparency, fairness, ethics and social responsibility in modern finance. beyond financial returns, sri also accords primary consideration to the impact on economic activity and on the broader society, thereby incorporating the important dimensions of environmental sustainability, social responsibility and governance. this is in close parallel with the inherent principles of islamic finance, in which financial transactions must be underpinned by real economic activities, and its operations are guided by the principle that money should also be used to create social good. the sri market is also fast growing. it is expected to become a mainstream asset class by 2015, reaching a projected total of more than 26 trillion us dollars of asset - under - management, accounting for 15 to 20 percent of the global market. this recent growth has largely been driven by the demand

##ance, if supported by microtakaful, has the potential to provide a more comprehensive, sustainable and accessible financing and protection solution for the lower income groups and small businesses. access to financial products and services enhances the potential to thrive and to generate growth and employment. investment in talent development and research activities for this purpose can thus contribute towards evolving a more inclusive islamic financial system. this is also within the paradigms of development and welfare in the islamic context, as the islamic finance model is also designed to be relevant to social welfare and economic development of not only the under - privileged communities, but also of contributing towards intensifying the progress of low income countries in the world. thirdly, is for the effective dissemination of information to facilitate the standardisation and harmonisation process in islamic finance. several developments in this recent decade have facilitated standardisation and harmonisation in islamic finance. the extensive engagement related to setting the prudential standards for islamic finance by the islamic financial services board ( ifsb ) has facilitated consistent implementation of regulatory and supervisory standards. there has also been greater international dialogues between global shariah scholars through several platforms and structured forums. this greater engagement facilitates convergence in interpretation and the greater leverage on technology for the active dissemination of information at real time further facilitates the harmonisation process. the next stage however is the need for more efficient information dissemination that would promote greater market transparency, price discovery and industry insights. the development of the islamic financial knowledge repository portal by isra that will be launched today will be an important effort that can contribute to meeting this objective. as a knowledge database it centralises shariah rulings and its justifications, legal and regulatory requirements. this is enriched by the latest collection of research and development in islamic finance. this database will become an important source of reference and guidance for shariah and industry practitioners, policy makers, researchers and academicians. this initiative by isra will not only promote greater understanding but mutual respect and recognition of islamic finance. concluding remarks the global islamic finance industry is transitioning to its next stage of development and will stand to benefit from an enhanced universal appeal with a wider consumer and business segment, greater financial inclusion and harmonisation through increased research and development and more effective dissemination of information. a strong culture of applied research and development in islamic finance that promotes innovative financial engineering, through practical and useful applied research findings is an integral part of industry - building efforts to support the industry ’ s growth. greater collaboration will be important to create greater synergy