jointly grow the industry. by applying the same regulatory framework to both conventional and islamic financial institutions, singapore aims to encourage financial institutions here to grow their suite of products and services for the islamic finance industry. conclusion let me conclude. islamic finance has come a long way. as it embarks on its next phase of growth, the industry must overcome the challenges posed by slower growth and global deleveraging, and build scale and reach critical mass. this requires financial institutions, regulators, and international standard setting agencies to work closely together. forums like these are ideal platforms. i wish you fruitful discussions. thank you. bis central bankers ’ speeches

ravi menon : the next phase in islamic finance opening address by mr ravi menon, managing director of the monetary authority of singapore, at the 3rd annual world islamic banking conference : asia summit ( wibc asia 2011 ), singapore, 5 june 2012. * * * dr ahmad mohamed ali al - madani, president, islamic development bank, your excellencies, distinguished guests, ladies and gentlemen, good morning. and to all our foreign guests, a warm welcome to singapore. an increasingly difficult conjuncture we are meeting here for the 3rd annual world islamic banking conference asia summit, at a time of increasing stress in the global economy and financial system. • the effects of monetary stimulus, which had helped to support the economy and prevent a full - blown financial crisis, are now levelling off in both the eurozone and the us. • the labour market remains a significant drag on growth in the advanced economies. unemployment has hit new highs in the eurozone while employment and production numbers in the us are showing signs of weakness. • the story of a two - speed global economy is coming under strain, with demand weakening across emerging asia. the moderation in china ’ s economic growth appears to be somewhat sharper than expected. india is undergoing an even more pronounced and broad - based slowdown. but the key risk that has increased in recent months and poses the biggest threat to global economic prospects is the situation in europe. • greece is preparing for a historic election that may well decide its future in the eurozone. • spain is experiencing severe strains in its banking system against a backdrop of a sharp reduction in gdp, high unemployment, and a deteriorating real estate sector. • italy and spain are facing higher sovereign borrowing costs that threaten fiscal sustainability. to be fair, eurozone governments have been taking extraordinary measures to help stabilise the situation, reduce fiscal deficits, and restore growth. but they have reached a turning point where bolder, decisive actions will be needed to reverse the tide. the next few weeks and months will be critical. islamic finance : challenges to overcome let me turn now to the subject of our conference. islamic finance has shown remarkable resilience during the last five years – perhaps the most challenging economic environment in the post - war era. the industry has grown by an estimated 20 % annually in the last five years to reach us $ 1. 3 trillion in total assets in 2011. islamic banks have grown both in number and in scope. bis central bankers ’ speeches but the sustained