future earnings and apply shariah - compliant risk mitigation techniques at an early stage so as to manage the volatility in returns to ensure stable and competitive income to depositors. similarly, applications of risk - based models allow islamic financial institutions to conduct stress testing, sensitivity analysis and simulations based on multiple scenarios to take into account all possible potential outcomes that may occur. this will enhance the capacity of islamic financial institutions to better anticipate the possible impact of financial shocks on future earnings and hence formulate contingency plans leading to a more effective and efficient asset and liability management. in addition, it - based risk management systems would strengthen the capacity of islamic financial institutions to effectively manage the segregation of demand deposits, restricted and unrestricted investment accounts and shareholders funds in accordance with their distinct investment objectives and risk tolerance. the mapping of financial performance of assets with risk - adjusted returns to these specific classes of investors will lead to enhanced accuracy and transparency in the determination of returns. in addition, as returns in islamic banking are uncertain and can only be ascertained on an ex - post basis, well - developed it systems can equip islamic financial institutions with the ability to make projections on future returns to reduce the degree of uncertainty in the returns to be paid to the depositors. this would enhance credibility and strengthen the competitiveness of the islamic financial industry. conclusion the future prospects of the islamic financial services industry will be the result of the combined efforts of all the relevant entities in the financial sector - the industry, the regulators, the market participants and the international community. these collective efforts need to be galvanized as a coordinated and concerted effort to maximize the potential for the industry. evolving the shared vision and common goal to be achieved will be an important first step. of greater importance will be the actions that need to be taken to make this happen. it will be our actions and initiatives taken today that will contribute towards determining the future that we aspire.

fraziali ismail : closing ceremony of the project greenback 2. 0 kota kinabalu welcoming remarks by mr fraziali ismail, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the closing ceremony of the project greenback 2. 0 kota kinabalu, kuala lumpur, 14 february 2020. * * * before i begin, i would like to convey my deepest condolences to the family members and friends of those who were involved in the boat crash incident near pulau tanjung aru, yesterday. let us pray for the safety of the victims as well as the search and rescue team. ladies and gentlemen, after we concluded project greenback in johor bahru more than two years ago, bank negara malaysia together with the world bank sat down to choose the second “ remittance champion city ”. among others, we considered ipoh, butterworth and kota kinabalu. we discussed long and hard, and weighed our options. our assessment suggested that ipoh and butterworth would have presented us with a rather similar case study to johor bahru. this is in view of the similar profile of the target groups who are largely made up of urban migrants, therefore exhibiting similar remittance behaviors. the odd for success would have been easier and kinder to us. but our intention has never been about replicating our experience in johor bahru. kota kinabalu offers a much more exciting proposition. this is despite our full cognisance of the challenges ahead of us, such as geographical barriers and connectivity issue. the more we thought about it, the more we were adamant to take this ‘ road less travelled ’, premised on a very clear objective which was to test how digitalisation and technology could be leveraged as a driver for inclusive financial services. our work under project greenback 2. 0 were not limited to the city of kota kinabalu alone. we covered keningau, inanam, tenom, kunak, tawau. some of these areas are remote, and admittedly, only a few of these i have visited myself. our work also brings us to this beautiful city of sandakan, where we gather this evening. it is my great pleasure to extend a warm welcome to all of you to the closing ceremony of the project greenback 2. 0 kota kinabalu. our utmost appreciation goes to our guest of honor, yang berhormat dato ’