finance is no longer limited to muslim nations and muslim communities. the world realizes the economic clout of 1. 5 billion people is a market that cannot be ignored. the islamic finance market offers an enormous potential for future growth. long established financial centers such as london, hong kong, tokyo and singapore have already begun the first steps to enhance their respective centers into vibrant islamic financial centers. opportunities in islamic finance this would raise several implications and opportunities for the development of islamic finance. the increased competition where non - traditional players will enter the industry bringing with them superior system, management skills, established r & d and risk management system with proven track record globally will spur growth or at least maintained at an already phenomenal growth in islamic finance. there will be more innovative products, new concepts and new structures, as the new players bring with them new value proposition to attract or entice their customers. demand will grow for services related to islamic finance in the areas of consultancy, accounting, trust, shariah, legal advice and it services. new shariah concepts will emerge and this will require scholars to rethink some of the structures that had been well established. in addition, new demand for standardization and harmonization of shariah standards would intensify as cross border transactions increases. this will also result in an increase in demand for financial products that can be sold between markets. malaysia ’ s islamic financial industry malaysia is well positioned to take on this competition. the path for the development of islamic finance started as far back as 1983. from the building of the foundation of legal, regulatory and shariah framework, the islamic banking act ( 1983 ) to the formation of the first islamic bank and takaful company to instituting islamic windows concept for banking institutions and encouraging competition amongst the islamic financial institutions in the nineties ( 1990s ), to establishing key infrastructures and institutional arrangements such as the shariah advisory council and the islamic money market, we are on a mission to be the center for islamic finance. today we have a comprehensive system for islamic finance but as you would expect, because of competition and the fast changing pace of the banking industry, we must continue to strive to maintain the lead in this industry. there are a few pre requisite to maintain this competitive edge. it is the ability of the industry to meet the evolving and discerning needs of the users of islamic finance and the ability to meet those needs in a timely and comprehensive manner. the solutions to customer needs must be

hiroshi nakaso : japan ’ s economy and monetary policy speech by mr hiroshi nakaso, deputy governor of the bank of japan, at a meeting with business leaders, shimane, 9 october 2013. * * * introduction it is my great pleasure to be given an opportunity today to exchange views with administrative, financial, and business leaders in shimane prefecture. i would like to take this opportunity to express my sincerest gratitude for your cooperation with the activities of the bank of japan ’ s matsue branch. on a personal note, my relationship with the san - in region goes back long years. my father was born in yonago, tottori, and i have visited his birthplace several times. the reason why i feel nostalgic, despite this being my first time in matsue, is that my roots are in this region. japan ’ s economy has long been in a state of deflation, since the financial crisis of the 1990s. for japan ’ s economy to escape this situation and restore its vitality, it is most important to first overcome deflation and change the mind - sets of economic entities such as firms and households so that they become more proactive. in this sense, the biggest immediate challenge facing japan ’ s economy is the overcoming of deflation at the earliest possible time, and i realize that the role the bank of japan has to play is crucial. based on this recognition, the bank introduced a new policy in april, called “ quantitative and qualitative monetary easing ” ( qqe ). today, before exchanging views with you, i would like to talk about economic developments at home and abroad. i will also elaborate on the thinking behind the qqe. lastly, i will talk about economic development in this region. i. recent developments and outlook for economic activity at home and abroad recent developments and outlook for japan ’ s economy first, i will focus on japan ’ s economy. a virtuous circle from income to spending has gradually been taking hold both in the household and business sectors. in the household sector, private consumption has been resilient. sales at department stores have remained firm and consumption of services such as outlays for travel and sales in the food service industry have held steady. with underlying active consumption by senior citizens, notably baby boomers, such resilience in private consumption seems to have been sustained mainly by wealth effects stemming from a rise in stock prices and an improvement in sentiment since the turn of