therefore worries me that greece might go backwards in terms of its reform agenda. suffice to say, it is not enough to correct misalignments solely at the national level. we also need structural reforms at the european level. and here, a lot has been done since the crisis broke out. first, the rules of the stability and growth pact were tightened and a fiscal compact was adopted in order to restore confidence in public finances. second, a procedure for identifying macroeconomic imbalances at an early stage was established. and third, a crisis mechanism was set up to serve as a “ firewall ”, safeguarding the stability of the financial system in the euro area. in addition to these measures, the euro area took a major step toward deeper financial integration. on 4 november 2014, the first pillar of a european banking union was put in place. on that day, the ecb assumed responsibility for supervising the 123 largest banks in the euro area. together, the banks concerned account for more than 85 % of the aggregate bis central bankers ’ speeches balance sheet of the euro area ’ s banking sector, making the ecb one of the biggest banking supervisors in the world. taking banking supervision from the national level to the european level has three concrete benefits. first, european banking supervision allows banks in the entire euro area to be supervised in a uniform manner according to the same high standards. these harmonised standards will emerge from the cross - border sharing of experience, noting the best aspects of each national approach to banking supervision and adopting these for use at the european level. second, european banking supervision makes it possible to effectively identify and manage cross - border problems. this is essential because large banks are usually active in more than one country. third, taking banking supervision from the national to the european level will add a degree of separation between supervisors and the banks they supervise. this will prevent supervisors from handling their banks with kid - gloves out of national interest. as you can see, we have come to expect a lot from european banking supervision. and in 2016, the single supervisory mechanism will be supplemented by a european resolution mechanism for banks. this will be the final step on the road to banking union and a major step forward in designing a better framework for the european monetary union. 4. conclusion ladies and gentlemen looking at current events, some of you may feel reminded of what happened in 2010 and in 2012. nevertheless, it should not be forgotten that, in the past five years, we have made considerable

observing compliance with environmental laws and standards. even boards too have to learn and adapt to the demands of the new operating environment. relevant skillsets are also critical to support innovation within the financial sector to capture opportunities and improve the delivery of islamic financial solutions. indeed, technology can be better optimised to revolutionise the way islamic finance operates and offer innovative solutions to customers. for example, blockchain or artificial intelligence applications hold enormous potential for simplifying documentation requirements associated with shariah contracts, thus improving the overall efficiency of business operations. it should be abundantly clear by now to any financial institution that is serious about vbi, that, the task of building the human and intellectual capital to achieve and sustain value - based business models cannot be left solely to the human resource departments. it requires nothing less than strategic direction and resourcing decisions at the highest levels of the organisation. changing mindsets einstein once said “ the world as we have created is a process of our thinking. it cannot be changed without changing our thinking ”. the world today continues to push the limits of social and environmental thresholds, that are posing increasingly serious threats to humanity. vbi is therefore, much more than a current and passing fad, but a deeper conviction of the critical need 3 / 4 bis central bankers'speeches to begin the process of changing mindsets in a lasting way. financial institutions are a key, but not the only catalysts in this process. customers and investors need to be supported with relevant information, along with the means and ability to compare such information, in order to better understand the value propositions of islamic finance. the encouragement of pension and institutional funds with a sustainable investment orientation, particularly in markets where such funds remain largely underdeveloped, would be important to provide a stronger impetus for vbi. credit rating agencies could also be important contributors to a new landscape, with stronger emphasis on economic, social and environmental sustainability in assessment frameworks and methods. and regulators and policymakers need to be appropriately responsive to the adoption of sustainable practices. conclusion in conclusion, the islamic finance industry today faces an important, strategic choice – to either continue on a path that largely ignores the stark social and environmental realities that confront humanity, or to thoughtfully chart a new path that fully embraces the idea and philosophy of finance beyond profits. the latter will be an unfamiliar path in many respects, but one that is far closer to the fundamental premise of shariah on which islamic finance is based upon.