##h cendekiawan shari ’ ah nusantara has emerged as an important platform for greater consensus to be forged among the shariah scholars in the nusantara. finally, is the imperative for a robust liquidity management infrastructure for islamic finance, both at the national and international levels. this is vital not only to ensure the resilience and stability of the islamic financial system but also to reduce the cost of intermediation. cross - border liquidity risk management in the islamic financial system still remains a significant challenge, with the lack of short - term shariah compliant instruments in international currencies. the global efforts to strengthen the liquidity arrangements for the international islamic financial system will be an important breakthrough in facilitating more efficient cross - border liquidity management by islamic financial institutions, thereby meeting the challenges of the trend of greater internationalisation. conclusion let me now conclude. the growing role of the emerging economies as an anchor to global growth in particular, in asia, represents a major shift in the global economic landscape. in this environment, islamic finance is well - positioned to assume a much larger role as a competitive form of financial intermediation for supporting economic activity, and as a channel for enhancing greater global connectivity. efforts to strengthen the foundations for islamic finance to ensure its continued resilience amid the more challenging environment must remain a priority going forward into the future. indeed, our commitment to act guided by this foresight will strengthen the prospect for islamic finance to realize its potential in the region and beyond. bis central bankers ’ speeches

3 ), 537 - 558. 11 huang, h. and lin, s. ( 2009 ). non ‐ linear finance – growth nexus. the economics of transition 17 ( 3 ), 439 - 466. 12 levine, r., ( 2004 ). finance and growth : theory and evidence, nber working paper no. 10766 ; romer, p. m., ( 1990 ). endogenous technological change, journal of political economy, 98 ( 5, part 2 ), s71 - s102. widespread sell - off and a global unwinding of carry trade. analogously, the global inflation surge in the wake of the war in ukraine provoked a synchronised and aggressive tightening of monetary policy and financial conditions, resulting in bank failures and deposit runs in some jurisdictions in march 2023. iv. situating finance in national accounting in the circular flow of income and expenditure that describes the working of an economy, transactions in goods, services, compensations and taxes are matched by flows of saving and investment, which represent inter - sectoral transfers of lendable resources. in india, the household sector typically generates surplus saving relative to its investment which it lends to other sectors. recently, net financial saving of households has almost halved from its level in 2020 - 21 due to behavioural changes underway in the form of unwinding of prudential savings accumulated during the pandemic as well as shifts from financial assets to physical assets such as housing. going forward, boosted by rising incomes, households will likely build back their financial assets – 15 per cent of gdp was observed during the early 2000s up to the global financial crisis. this process has already begun – households ’ financial assets have increased from 10. 6 per cent of gdp during 2011 - 17 to 11. 5 per cent during 2017 - 23 ( excluding the pandemic year ). their physical savings have also risen in the postpandemic years to over 12 per cent of gdp and could rise further – they had reached 16 per cent of gdp in 2010 - 11. accordingly, households will remain the top net lenders to the rest of the economy in the coming decades. the private corporate sector has drastically reduced its net borrowings from the rest of the economy 13, reflecting a combination of rising internal accruals and subdued capacity creation. looking ahead, its net borrowing requirement is likely to rise on the back of a revival in the capex cycle. these financing