nout wellink : towards a new framework for monetary policy? lessons from the crisis speech by dr nout wellink, president of the netherlands bank and chairman of the basel committee on banking supervision, at the workshop “ towards a new framework for monetary policy? lessons from the crisis ”, amsterdam, 21 september 2009. * * * over the past two years, we have all been surprised by the fast pace at which events have unravelled. but ideas have also evolved rapidly. only one year ago, at our monetary policy workshop we were discussing whether financial imbalances ought to be incorporated in monetary policy making. since then, there has been an increasing consensus that monetary policy should lean against the wind. at today ’ s workshop, we will not focus on whether but on how monetary policy can be used to lean against the wind. in my remarks, i want to address three questions. first, what have we learned about the runup to the crisis? second, why did monetary authorities not lean against the emergence of massive financial imbalances, which turned out to have disruptive macro effects? and third, how can we use the answers to the first two questions to think about the next approach to monetary policy? what have we learned about the causes of the crisis? let me start with what we have learned about the run - up to the crisis. looking back at the years before this crisis – and more in general at all major crisis episodes in industrial countries – five main, interrelated ingredients of an accumulating imbalance stand out. 1. the first – and in my opinion root – ingredient of the crisis lies in the large us external imbalance and the high levels of us international debt. i consider these to be a reflection of a country having lived beyond its means and, in particular, an overleveraged private sector. 2. second, low interest rates relative to a natural rate of interest – especially in a context of a buoyant economy and low inflation – suggested that monetary policy had been too easy in the years before the crisis. fiscal policy was probably also too easy. 3. third, global imbalances and too low interest rates supported very strong credit growth and excessive risk taking. 4. fourth, asset prices rose sharply, particularly in equity and housing markets. 5. fifth, a high level of private debt resulted from a prolonged period of strong credit growth. what we have learned is that it is necessary to recognize that the combination of these five

zeti akhtar aziz : launch of the investment account platform in malaysia keynote address by dr zeti akhtar aziz, governor of the central bank of malaysia ( bank negara malaysia ), at the launch of the investment account platform ( iap ), sasana kijang, kuala lumpur, 17 february 2016. * * * it is my great pleasure to be here this morning for the launch of the investment account platform ( iap ), a centralised multi - bank platform that is likely to have significant implications on the role of financial intermediation in the islamic financial system. this platform is more than just a new and innovative medium for shariah - compliant investments and fund raising initiatives. it signifies a fundamental shift towards providing solutions that addresses the prevailing gap in the current risk - transfer financial regime to one that now allows for financial institutions to include a wider range of investment intermediation activities that emphasises risk - sharing and thus facilitate a stronger linkage of finance and the real economy. islamic finance in malaysia has journeyed through different phases of development and has now evolved into a complete islamic financial ecosystem that operates alongside the conventional financial system. underpinning its growth has been the infrastructure and institutional development, product development that is reinforced by increased competition, and supported by a robust shariah, legal and regulatory framework. its development has also been strongly anchored by the investment in human capital development. the industry has now not only achieved a market share beyond the target of 20 percent by the year 2010 as was envisioned in the financial sector masterplan, but it has also met the increasing and differentiated demands of the economy through the range of financial product offerings in islamic banking, takaful and islamic capital market segments. the initiatives taken to develop the islamic financial system has aimed to build a comprehensive financial sector that operates at the highest efficiency and with an outreach that would extend beyond domestic and regional markets and thus facilitate greater cross border economic linkages. in advancing to the next level of growth and development, the islamic financial services act 2013 ( ifsa ) now provides the industry with the foundation to transition into its next stage of development. the act takes into account the specificities of islamic finance while ensuring a robust governance of an end - to - end shariah compliant regulatory framework. it also provides an enabling environment for islamic banks to diversify their business through the offering of investment accounts as an alternative means of raising funds from the public. with this, islamic banks are allowed to pursue