/ abs. pdf, basel committee on banking supervision ( 2011 ) and bertay, gong and wagner ( 2017 ). 5. see allen ( 2022a ). 6. see deutsche bundesbank ( 2022 ). 7. see b [ https : / / www. bis. org / bcbs / publ / d546. pdf ] asel committee on banking supervision and cornelli, doerr, frist and gambacorta ( 2023 ). 8. see mccaul ( 2023 ) for a discussion on how to improve the oversight of crypto asset markets. 9. see financial stability board and international monetary fund ( 2022 ). 10. cong, li, tang and yang ( 2022 ) estimate the share of “ wash trading ” to be as high as 70 % of total trading activity in unregulated crypto - asset exchanges. “ wash trading ” describes a type of market manipulation in which investors simultaneously buy and sell the same financial assets in order to create artificial activity in the market. this distorts prices, volumes, and volatility in unregulated marketplaces. 11. see european systemic risk board ( 2023 ). 12. see bremus and buch ( 2017 ). 13. see adrian and brunnermeier ( 2016 ). covar measures the “ value at risk ” of the financial system, conditional upon an individual financial institution being in distress. a higher value implies higher systemic risk. 14. see financial stability board ( 2021 ). 15. see diamond and rajan ( 2009 ) and deutsche bundesbank ( 2019 ). 16. see basel committee on banking supervision ( 2013 ). 17. see financial stability board ( 2021 ). 18. see https : / / www. bloomberg. com / features / 2022 - lehman - brothers - collapse - plan - repay - afterbankruptcy / # xj4y7vzkg. 19. see basel committee on banking supervision ( 2021 ). 20. see financial stability board ( 2022 ). 21. see gschossmann, van der kraaij, benoit, and rocher ( 2022 ). 22. see european systemic risk board ( 2023 ). 23. see financial stability board ( 2023a ) for challenges in cross - border payments. 24. see https : / / coinmarketcap. com / charts /, accessed 30 march 2023.

encik abdul rasheed ghaffour : value - based intermediation ( vbi ) propelling islamic finance address by mr encik abdul rasheed ghaffour, deputy governor of the central bank of malaysia ( bank negara malaysia ), at the value - based intermediation ( vbi ) dialogue, kuala lumpur, 24 august 2017. * * * over the years, finance has lifted the lives of many, enabled businesses to grow and helped to fund the construction of public infrastructure that we now depend on. yet, as the global economy transforms and society evolves, the question as to whether the financial sector is sufficiently serving the needs of the real economy continues to be debated. the evidence from the global financial crisis underlines the need for the financial sector to restore its balance with the real economy. there is a need to rethink, reassess and re - strategise the role and contribution of the financial industry. undoubtedly, there is an increasing expectation for the financial sector to deliver greater impact to the economy and society. i am pleased to be here with you today and be part of this important milestone in our islamic finance journey. the issuance of the value - based intermediation ( vbi ) strategy paper by bank negara malaysia marks the next step to realising the full potential of islamic finance. on behalf of the bank, i wish to thank all of you who have devoted time and effort to work with us in this important initiative. your input has been valuable in designing the strategies and approach to advance vbi as a key thrust in propelling the islamic finance industry further forward. today, i would like to share some of my thoughts on the concept of value - based intermediation. i will begin by giving an account of the achievements of our industry within the past decades. i will then touch on the role of vbi as a catalyst for growth with positive impact and the call for islamic finance to lead the way in realising the visions and objectives of vbi. islamic finance in malaysia has evolved and grown by leaps and bounds over the last 30 years. today, we have a well - developed and regulated islamic finance industry. there are diverse industry players, both local and foreign. prior to 2000, there were only two islamic banks and two takaful operators in the country with total market share and takaful penetration rate of less than 5 %. islamic banking assets have now grown to capture more than a quarter of the