investment trusts ( reits ) are also using shariah - compliant structures for their financing needs. 16. we were honoured to host the 5th islamic financial services board annual summit in may. at this summit, mas issued a consolidated set of guidelines to provide greater clarity and certainty on how our banking regulations apply to islamic banking. islamic finance was also featured when the paris europlace international financial forum was held in singapore in october. we will continue to work with fellow regulators and the private sector to fine - tune our regulatory approach and to develop the infrastructure and talent to facilitate the growth of islamic finance in singapore. 17. as i mentioned earlier, bringing leaders in finance and business together to understand the developments in each region provides a valuable platform for collaboration. i am therefore pleased that mega events has decided to bring the first annual wibc asian summit ( asia wibc 2010 ) to singapore. islamic finance will provide an increasingly important bridge in the growing connectivity between the middle east and asia. singapore is pleased to help catalyse deeper relations between these two high - growth regions. asia wibc will provide a unique platform for industry players from more established centres of islamic finance to share their experiences. i look forward to welcoming all of you to the inaugural asia wibc in singapore next june. conclusion 18. in conclusion, the global economy is recovering gradually, though there remain many risks ahead. emerging economies are expected to grow well, but we need to tackle the many structural challenges. governments need to undertake structural reforms. the financial sector needs to facilitate the flow of funds into growth areas, and islamic finance will play an important role. by working closely to deepen risk management, and to enhance the ground knowledge in each region, we can contribute to sustainable growth. on this note, i wish you another very successful conference in bahrain.

disorderly failure. this requirement would not break brand new regulatory ground, since it would really be a modification of existing tier 2 gone - concern capital concepts, and would complement the requirement for minimum equity levels included in basel iii. as implied in my identification of short - term funding vulnerabilities as a priority area, the best way forward here is considerably less easy to specify. short - term initiatives on money market funds and triparty repo are both possible and desirable. in truth, though, because money market funds are largely american and, to a somewhat lesser extent, european, the united states and the european union together have the ability to address the global run risks associated with these products. i think we also have the responsibility to do so, but not necessarily in identical ways. accordingly, i would hope that both the united states and the european union would each take effective action to counter the run risk, tailored as appropriate to their regulatory environments, and then explain those actions at iosco and the fsb, where their efficacy can be reviewed. similarly, since the settlement process for triparty repo that remains of concern is centered at two institutions, both of which are regulated american banks, the united states can take effective action without need of an international agreement as to broader initiatives, proposals to require minimum haircuts for all securities financing transactions have been tentatively discussed in the fsb. this is certainly a ripe subject for discussion, insofar as securities financing transactions facilitate leverage, enable maturity transformation, and produce the kind of interconnectedness that can spawn runs and contagion. at present, no set of generally applicable prudential standards governs these activities. even within regulated firms, microprudential risk - weighted capital standards have little effect, since they are calibrated against credit risk and most such transactions are short - term and fully ( or over ) collateralized. thus requirements that would attach to instruments and transactions, as opposed to firms that happen to be prudentially regulated for other reasons, have considerable attraction. on the other hand, universal haircut requirements are the type of regulatory innovation that i suggested earlier was best developed internationally following some experience within financially significant countries. one may, for example, have significant concern about some of the unintended consequences that would ensue. my instinct, then, is that the analysis of this idea should continue within the fsb and, one hopes, in other venues both in and out of the official sector. there