system i will finish with an update on progress on regulatory reforms and supervisory actions to strengthen the financial system. in october, the federal reserve board proposed a rule to strengthen the liquidity positions of large and internationally active financial institutions. 1 together with other federal agencies, the board also issued a final rule implementing the volcker rule, which prohibits banking firms from engaging in short - term proprietary trading of certain financial instruments. 2 on the supervisory front, the next round of annual capital stress tests of the largest 30 bank holding companies is under way, and we expect to report results in march. regulatory and supervisory actions, including those that are leading to substantial increases in capital and liquidity in the banking sector, are making our financial system more resilient. still, important tasks lie ahead. in the near term, we expect to finalize the rules implementing enhanced prudential standards mandated by section 165 of the dodd - frank wall street reform and consumer protection act. we also are working to finalize the proposed rule strengthening the leverage ratio standards for u. s. - based, systemically important global banks. we expect to issue proposals for a risk - based capital surcharge for those banks as well as for a long - term debt requirement to help ensure that these organizations can be resolved. in addition, we are working to advance proposals on margins for noncleared derivatives, consistent with a new global framework, and are evaluating possible measures to address financial stability risks associated with short - term wholesale funding. we will continue to monitor for emerging risks, including watching carefully to see if the regulatory reforms work as intended. since the financial crisis and the depths of the recession, substantial progress has been made in restoring the economy to health and in strengthening the financial system. still, there is more to do. too many americans remain unemployed, inflation remains below our longer - run objective, and the work of making the financial system more robust has not yet been completed. i look forward to working with my colleagues and many others to carry out the important mission you have given the federal reserve. thank you. i would be pleased to take your questions. see board of governors of the federal reserve system ( 2013 ), " federal reserve board proposes rule to strengthen liquidity positions of large financial institutions, " press release, october 24. see board of governors of the federal reserve system, commodity futures trading commission, federal deposit insurance corporation, office of the comptroller of the currency, and securities and exchange commission ( 2013 )

. the intrinsic principle of profit and risk sharing thus provides an in - built check and balance to the islamic financial transactions. a combination of these distinct features together with the implementation of prudential risk management standards and practices would contribute to the robustness and resilience of islamic financial system. mutual respect on shariah matters this decade has thus been a phase of innovation in the global islamic financial system with a number of breakthroughs and major milestones in innovative deals and structures. the advancement of sukuk, islamic securitization, islamic private equity, islamic real estate investment fund and other financial instruments in terms of sophistication and product range has widened the international market reach of islamic finance, particularly in the cross border transactions. at the same time, this phase is also seeing a number of key issues being raised, particularly in respect of divergence of shariah views underlying a number of the islamic financial transactions. while such a divergence of opinions in islamic financial transactions is not a new phenomenon, it has presented a new set of challenges in today's increasingly more globalized market. to forge closer linkages between the global islamic financial markets would require a common understanding and acceptance on the applicable rules and standards. indeed, cross border transactions would require the jurisdictions involved to mutually recognise the validity of respective rules, practices and underlying shariah interpretations. this is key for the orderly development and for advancing the pace of progress of the international islamic financial industry. for this, it is important to have a concerted effort in providing greater clarity on the mutually acceptable strategy for the development of global islamic finance. in the current globalised environment, the role of scholars needs to transcend beyond pure advisory or shariah rulemaking, to a more strategic role in charting industry development. this could be in part be achieved by having global shariah standards for the islamic financial industry. a mutually agreeable position could be achieved with the application of mutually recognized principles and processes to deduce the shariah rulings and views. 1 there are lessons to be drawn from the previous success stories in the history of islamic jurisprudence whereby the strong sense of mutual respect prevailed among muslim jurists with multiplicity of shariah opinions. the jurists from different mazhab had high regard for differing views expressed by other jurists, even in ibadah matters. in relation to this, malaysia has taken a three - prong strategic initiative to promote greater mutual respect of the shariah