standards adopted by the basel committee, the international association of insurance supervisors ( iais ) and the international organization of securities commissions ( iosco ), would serve to minimise the opportunity for regulatory arbitrage arising from cross - sectoral and cross - border differences, whilst ensuring that the regulatory requirements that are distinct for islamic finance are effectively addressed. a survey conducted by the ifsb in 2011 indicated that 9 countries have implemented the standards issued by the ifsb and that 18 countries are expected to implement them within the next five years. their consistent implementation will be vital. this harmonization will also facilitate consistent participation in islamic finance across borders and contribute towards global financial stability. whilst micro - supervision is an integral part of the toolkit for ensuring financial system stability, the recent global crisis highlighted the need for it to be complemented by macroprudential surveillance and measures. this dimension of prudential regulation involves the incorporation of horizontal assessments of risks across institutions, sectors and national borders, including the risks in asset markets. this is to address systemic risks and to take into account the interconnectedness within the financial system. this is particularly relevant for the islamic financial services industry given the close link of islamic finance with the real economic sector through the various modes of islamic financing contracts. in particular, heightened surveillance is needed over developments in the real estate and commodity markets. equally important is a greater understanding of the inter - relationships between the financial and the real sector, including the potential for second round effects that are transmitted across sectors of the financial system and the economy. the increased cross - border reach of islamic finance has also underscored the importance of enhanced cross - border collaboration among the supervisory authorities. information - sharing and effective coordination among supervisors will enable a complete understanding of the entire risk spectrum of the risk taking activities undertaken across jurisdictions by the islamic financial institutions. this is especially important in crisis situations, given the serious ramifications of a delayed or ineffective response to cross - border contagion. robust institutional arrangements are therefore vital to improve the efficiency of the supervisory processes and to allow for the early detection and management of cross - border transmission of risks arising from group - wide activities. another key area is the evolution of the legal framework for islamic finance. this is to provide greater certainty and to build public confidence in the system as a whole. this necessitates a legal framework that enforces end - to - end shariah compliance in the islamic financial services industry – through provisions and mechanisms that unamb

the necessary safeguards and to protect the privacy of data subjects. it is also equally important to ensure the accuracy, completeness and timeliness of credit information that is used by financial institutions to form credit decisions. inaccurate, incomplete and dated or delayed information can have damaging effects on individuals in terms of access to financing, while exposing banking institutions to the risk of losses. two key pieces of legislation that were recently enacted to support these outcomes are the credit reporting agencies act 2010 and the personal data protection act 2010. the credit reporting agencies act 2010 governs the operations of private credit bureaus and provides for the development of a regulated and structured credit information sharing industry. the personal data protection act 2010 on the other hand regulates the collection, processing and handling of personal information for commercial purposes by data users and provides safeguards for the data subjects against the abuse of such information for improper or unauthorized purposes. the operationalisation of these laws are currently in progress and we look forward to a productive exchange of experience during the course of this workshop which will benefit our own efforts to build a conducive environment for the orderly development of private credit bureaus. despite the compelling public benefits provided by credit registries, regulators face considerable challenges in educating consumers to appreciate how credit reports can help enhance their access to credit and improve the terms under which credit is provided. the role of regulators in public outreach is particularly important in the initial stages of building credit reporting systems to promote public confidence and wide participation. a common frustration that has emerged from the more pronounced emphasis on credit reports in lending decisions has been that access to credit increasingly depends on an individual ’ s credit history, and yet, one can only build a credit history if credit is granted. i note with interest that the workshop will discuss potential solutions to this dilemma. it is important that as the credit reporting landscape continues to evolve and assume more prominent roles in influencing borrowing and lending behaviours, appropriate attention is paid to consumer education to mitigate consumer anxiety and ensure that consumers understand and can exercise their legitimate rights. as uncertainties continue to cloud the global economic outlook at a time when borrowers have become more financially literate, lenders have become more innovative, and financial products have evolved to become more sophisticated and intricate, the need for an effective and efficient financial infrastructure becomes increasingly more critical to ensure the prudent expansion of credit and risk taking. this workshop addresses a key part of that infrastructure that can contribute towards avoiding damaging effects of a financial crisis induced by credit excesses.