strong cooperation and collaboration among the central banking community from both islamic and non - islamic countries. moving forward, it is essential for this strong cooperation to continue given the dynamic nature of the industry. in addition, the pace of internationalization can be expected to gain further momentum. as the international integration of islamic finance intensifies, cross border financial flows and its associated challenges will also increase. this will call for an even greater degree of international cooperation and coordination. while this new decade beckons the prospect of immense opportunities in islamic finance, our ability to realize this potential will be determined by the ability to recognize the shared responsibility it demands and to collectively advance forward the agenda of financial stability and resilience to achieve our ultimate goal of a shared prosperity. bis central bankers ’ speeches

confronted with an even greater task, of keeping abreast with the pace of innovation, taking into account the bis central bankers ’ speeches uniqueness of islamic financial contracts in addition to the universal scope of islamic banking business. this warrants supervisors to recognise the different aspects of risk management in islamic finance. islamic financial institutions in most jurisdictions have evolved within the confines of the conventional system and have been accustomed to business practices in their respective jurisdictions. this could result in distinctly different business and risk taking activities. collaboration among supervisory authorities of such internationally active islamic financial institutions thus needs to become part of the overall supervisory framework. these efforts would require regular engagement between home and host supervisors to ensure alignment of the supervisory oversight. this will allow for a more holistic evaluation of risks and vulnerabilities for islamic finance businesses that operate across borders. effective sharing of surveillance information and assessments of other supervisory issues on islamic financial institutions is already taking place through bilateral cooperation between supervisory authorities and other informal arrangements. going forward, a more structured framework for collaboration among supervisors is needed so as to enhance supervisory informational efficiencies, and ultimately, contribute to an effective assessment and early detection of any cross - border risk - transmissions from the group - wide activities. the homehost information sharing can be facilitated through the supervisory college arrangement as an institutionalised mechanism for greater cooperation. the recent financial crisis has also revealed the failure to understand the inter - relationship between financial and the broader sector, particularly in understanding the potential spill - over and second - round effects that are transmitted between sectors. post - crisis regulatory efforts have focused on macro - prudential measures to complement micro - surveillance and supervision. this entails horizontal assessment of risks across institutions, sectors and national borders, as well as risks in asset markets across time. this is particularly relevant for the islamic financial services sector. given the close ties of islamic finance with the real economic sector through the various modes of islamic financing contracts, a complete understanding of the entire risk spectrum often encounters much difficulties. it is therefore important for the regulators to also establish an integrated framework of macro surveillance for islamic financial activities across jurisdictions. the global database for prudential islamic finance statistics to be initiated by the ifsb, would therefore need to go far beyond ensuring standardised data collection among jurisdictions, but also to enable the generation of various macro and financial indicators, and global sharing of best practices in macro surveillance. the engagement by supervisors would also contribute towards the understanding of the systemic risk and its origins and would