two years. they expressed the view that this may be the result of a tighter supply of credit by larger financial institutions. they noted that their ability to meet increased demand is limited by capital constraints and underwriting capacity. credit unions also noted the statutory limitation on the percentage of small business loans they may make ( 12. 25 percent of total assets ). – at several meetings, participants noted that some small businesses are turning toward non - mainstream finance sources such as factoring companies and pay - day loans, which carry higher fees and interest rates, due to the lack of conventional credit sources. – in detroit, credit union service organizations are working to provide scale for making small business loans by centralizing some aspects of the underwriting process. – on the other hand, in new york, some credit unions indicated that outsourcing underwriting is not always an effective solution to capacity constraints, stating that they lose control over quality in outsourcing. – a credit union in tampa expressed the view that credit unions that are new to small business lending do not have an established infrastructure to compete with the bigger banks, particularly in areas such as sba programs. – in nashville, it was noted that some cdfis are receiving loan applications from businesses that they would not expect to hear from, such as moreestablished businesses whose financial conditions are better than those of clients they served several years ago. – in chicago, the chicago urban league, which offers bridge loans to companies that have gone through its entrepreneurship training and coaching programs, reported making such loans to businesses that could not get credit from banks. a banker indicated that several banks participating in the meeting were founding investors in the league ’ s loan fund. – at several meetings, cdfi participants described the challenges in becoming authorized to provide loans under the sba ’ s 7 ( a ) program. factors impacting the demand for small business credit small businesses and bank participants noted that the economic downturn has diminished sales for many small businesses, weakening balance sheets and asset values and thus dampening small business loan demand. some financial institutions reported weaker quality in loan applications from small businesses. comments related to credit demand by small businesses included issues of reduced credit quality, reduced confidence, a need for additional technical assistance, and interest in government contracting and entrepreneurship. reduced credit quality – banks generally attributed the decrease in overall lending to small businesses to their declining sales and asset valuations. they reported lower overall demand for credit from creditworthy businesses. some financial institutions also noted that

global financial stability. let me conclude my remarks. while the inherent strengths of islamic finance have contributed to its viability and resilience, going forward into the future, the foundations for its sustainability as a competitive form of financial intermediation will continue to be strengthened. concerted efforts are underway focusing on the further development of the islamic financial markets, the financial infrastructure, the investment in research and development to support innovation, and enhancing further the legal, regulatory and supervisory framework. tapping on the advances in technology and the development of human capital are also an important part of the development of islamic finance. finally, with greater liberalisation, effective infrastructure is also being put in place for enhancing interlinkages across jurisdictions. an important part of these developments will be for a more inclusive arrangement that would allow for greater interface with the current reform efforts being undertaken in the international financial system. our vigorous pursuit and commitment to strengthening the resilience of islamic financial industry would enhance the potential to contribute towards global financial stability and in turn enhance the prospects for global growth. thank you.