zeti akhtar aziz : policy and regulation of financial inclusion welcoming remarks by dr zeti akhtar aziz, governor of the central bank of malaysia, at the unag asia regional forum on policy and regulation of financial inclusion, kuala lumpur, 6 may 2009. * * * introduction it is my pleasure to welcome you to the united nations advisers group asia regional forum on policy and regulation of financial inclusion. this conference takes place at a time when the world is confronted with addressing many issues that have emerged from the current global financial and economic crisis. whilst significant attention and efforts are being channelled to resolving the financial crisis and creating an enabling environment for the resumption of growth and job creation, we must not lose sight of the financial inclusion agenda. financial inclusion is vital for creating balanced sustainable economic growth. it provides the opportunity for all members of society to benefit from economic progress. it allows for a shared prosperity, an aspiration that is encapsulated in the united nations millennium development goals. the central bank of malaysia is most honoured to be given the opportunity to host this forum which is being held in asia for the first time. we are most honoured to have governor nout wellink, president, of the central bank of netherlands. we are also pleased to have present mr. jacques toureille, unag advisor, who will be delivering the keynote address by her royal highness princess maxima on her behalf. this forum brings together some of the best minds from different parts of the world with diverse experiences in the field of financial inclusion. i am certain that this forum will enhance our understanding of the vital issues confronting the financial inclusion agenda, and will contribute towards the formulation of new ideas in addressing the important issue of regulation and policy that will ensure the sustainability of an inclusive financial system. the financial crisis and its implications on the poor the year 2009 will likely to be a difficult year for most countries. as we enter the third year of this financial crisis, there is already a synchronised recession in the advanced economies. for most of the emerging economies however, the full effects of the crisis on their domestic economies will be felt this year. it is important to note that the financial systems in most emerging economies continue to remain sound and more importantly continue to function, providing credit and supporting the economy. the collapse of external demand has however, adversely affected the more open emerging economies. the issue of equal concern however, is the more disproportionate impact these developments will

zeti akhtar aziz : enhancing the resilience and stability of the islamic financial system keynote address by dr zeti akhtar aziz, governor of the central bank of malaysia, at the islamic financial services board and institute of international finance conference : " enhancing the resilience and stability of the islamic financial system ", kuala lumpur, 20 november 2008. * * * it is my honour and great pleasure to speak before this distinguished audience, at this conference, jointly organised by the islamic financial services board and the institute of international finance. at a time when the international financial system is currently in turmoil, this forum provides an important opportunity to enhance our understanding of the developments, the issues that have come to the forefront and the implications it has for achieving stability in the global financial system. our specific interest today is to consider these issues in the context of the islamic financial system, in particular, whether islamic finance as a form of financial intermediation could be vulnerable to such risks of instability. in addition, what are the possible steps that might be taken to strengthen the resilience and stability of the islamic financial system. the collaboration between the ifsb and the iif in creating this platform is most timely. the global challenges posed by current international financial crisis necessitates global engagement. given its far reaching repercussions, the strategic solutions need to be global in nature involving both reforms and measures to restore soundness and stability of the international financial system. my remarks today will focus on the implications for the strategic direction of the islamic financial industry taking into consideration the lessons learned from such financial turbulence including the current crisis. as islamic finance becomes an integral part of the international financial system, it will be increasingly tested by such developments. history has shown that the world will continue to be plagued by such crises. the key for the islamic financial industry is therefore to ensure that it would not be a source of such financial instability and is able to achieve a level of resilience that would ensure its sustainability. lessons learned from systemic banking crisis the world has experienced more than 124 distinct banking crises in the recent 27 years. 1 while the triggering factors that precipitated financial crisis have been different, for most, it resulted in a general loss of confidence and a downward spiral in asset prices. such a crisis was experienced in the asian region just over ten years ago. following the lessons that were learnt from this experience, asia has emerged in a better position to manage the spill over effects of the current