as to penalise private shareholders. an interest rate that is too high on the public injection would encourage banks to pass on these rates to the end - users, who would ultimately be paying the bill. given the state of the economy, and the difficulty to ensure a high rate of return on investment over the next few years, stock prices would be likely to suffer. it would be paradoxical if the injection of public capital led to a fall in private stock prices. the ecb has established a scheme for defining an appropriate return on different instruments that could be used for recapitalisation, which has been sent to member states and the european commission. we hope that this scheme can be adopted in all member states, in particular those in the euro area. indeed, ensuring a level playing - field across banks and countries is essential to foster the return of confidence. the japanese experience of the 1990s has shown that the major factor behind the fatal delay in bank restructuring and recapitalisation has been political infighting and the immobility of the private sector. on 12 october, the heads of state of the euro area countries met in paris and announced measures aimed at providing financial institutions with additional capital resources so as to continue ensure the proper financing of the economy. the current state of the financial markets does not allow for hesitation. leadership is required at both the national and european levels to implement the solution which is on the table. a similar, massive action is needed across the atlantic. restoring confidence in markets is the biggest contribution that the state can make to get the economy back on track. it is time to act. thank you for your attention.

has been more gradual and sequenced to ensure that the financial system promotes balanced growth while remaining stable and sustainable. the robust legal and regulatory framework, together with the availability of a large and diverse pool of talent and expertise in islamic finance, forms the solid components in the system to meet the requirements of businesses. there is also shariah certainty in islamic finance through a robust shariah governance framework, which comprises shariah committees at the industry level and the shariah advisory council at the regulatory level. malaysia ’ s supportive framework and process for sukuk origination and sukuk listing also facilitates the issuance process of ringgit or nonringgit denominated sukuk in our market. efforts to deepen the sukuk market have provided significant opportunities for participation in this market, with the size of the malaysian sovereign and corporate sukuk outstanding growing threefold from a total of rm120 billion in 2005 to rm353 billion as at end - 2011. the market has also drawn the interest of foreign participation for their financing and investment activities. key in the development of islamic finance in malaysia has been its progressive internationalisation and the introduction of more innovative shariah - compliant financial solutions that meet the increasingly more complex and diverse international business requirements. bis central bankers ’ speeches let me conclude my remarks. in serving the needs of the real economy, islamic finance offers a comprehensive and competitive solution in meeting funding and investment requirements of businesses. given its international outreach and dimension, and ability to provide a total financial solution, islamic finance is now at the frontier in which it presents new opportunities to support the economy and overall financial stability. today ’ s dialogue session would serve to provide a greater understanding and appreciation on islamic finance and its potential for the intermediation of finances for international businesses. bis central bankers ’ speeches