lessons can be drawn from this crisis in our efforts to strengthen further the islamic financial infrastructure for a more resilient and stable financial system. in 2009, a task force on islamic finance and global financial stability was formed by the idb and the ifsb to undertake an assessment of islamic finance during the global financial crisis and to identify the further building blocks that are necessary to further strengthen the foundations of the islamic financial system. the report examines the conceptual elements inherent in islamic finance and their effects on financial stability and considers eight further areas of development in the islamic financial architecture to enhance its ability to deal with a more challenging future operating environment. this report completed in april this year aims to support the international efforts towards providing a strong foundation for financial stability in the global financial system. the eight areas for strengthening the financial infrastructure of islamic finance address the institutional capacity both at the national and international level with the aim of contributing to global financial stability. these building blocks which address the core foundations for the development of islamic finance include, first, ensuring the effective implementation of the prudential standards ; second, the development of systemic liquidity management infrastructure ; third, the establishment of strong financial safety nets ; fourth, putting in place an effective crisis management and resolution frameworks ; fifth, strengthen further the accounting, auditing and disclosure standards ; sixth, having an effective macro prudential surveillance in place ; seventh, having credible credit rating institutions and processes ; and finally eighth, enhancing close international cooperation and coordination among countries including in capacity building and talent development to support efforts at the national level to ensure financial stability. islamic finance does not exist in isolation and as it becomes an increasingly important component of the global financial system, it will inevitably be impacted by the changing global landscape of financial regulation. this is particularly important as its growth gains momentum both in terms of number of service providers and in terms of business volume and as the internationalisation process continues. the global call for improved regulation and increased oversight in an international financial environment that is fundamentally different will thus also require us to intensify the efforts that have already been undertaken to strengthen the financial regulation for islamic finance. the financial reforms in islamic finance to support sustainable and responsible innovation, in particular, need to leverage on its inbuilt strengths that set islamic finance apart in performing its role in the mobilisation and allocation of resources to generate real economic activities. in islamic finance, innovation is key in pushing the frontier of market development to generate the range of products and services, processes and

##ha served as india ’ s ambassador to the united states and as governor of jammu and kashmir. he was also a member of the widely acclaimed brandt commission which made a persuasive case for north - south cooperation. global cooperation, which is now so much a part of our daily discourse, draws its intellectual origins from the brandt commission report of the 1970s to which dr. jha contributed. this lecture series in his name honours dr. jha ’ s outstanding service to the nation and his leadership of the reserve bank during a very critical period. so far, there have been 12 lectures. the last one was given by prof. maurice obstfeld of the university of california last year, in december 2011. the lecture by hon ’ ble mr. shanmugaratnam this evening will be the 13th in the series. the distinguished speaker – mr. shanmugaratnam hon ’ ble mr. shanmugaratnam is the deputy prime minister of singapore, of course. but he is also the chairman of the international monetary and financial committee, the imfc, a position which puts him in the top echelons of global leadership in the field of finance and economics – a leadership that is playing an important role in steering us through the biggest financial crisis of our generation. bis central bankers ’ speeches mr. shanmugaratnam has impressive academic credentials – an ms in economics from the london school of economics followed by a masters in public administration from harvard. at harvard, he also received the lucius n. littauer fellowship for outstanding performance and leadership potential, a potential that he fully demonstrated in later career. tharman started his career with the monetary authority of singapore ( mas ) rising to the position of chief executive of that prestigious institution. he quit that job in 2001 to join politics, and has held cabinet appointments variously for education, economic administration and manpower. currently, he is deputy prime minister and minister for finance. i have had the privilege of watching mr. shamugaratnam perform in various international forums including the g - 20 and the imf - world bank meetings. he is widely respected for his intelligence and wisdom and for his uncommon ability to see the big picture even as we grapple with the pressures of immediacy. globally, he is seen as the principal interlocutor on asian economic values and aspirations. achieving inclusive growth : the challenge of a new era mr. shanmugaratnam will be speaking to us this evening on : “