central bankers ’ speeches regulation will help mitigate potential risk in the form of misuse and crime linked to currency exchange. ladies and gentlemen : • in accordance with its mandate, bank indonesia is the monetary and payment system authority. as the monetary authority, the mission of bank indonesia is to maintain rupiah stability and preserve effective monetary policy transmission. currency exchange, as a supporting sector of the financial industry, plays a strategic role in terms of achieving rupiah stability. • meanwhile, the mission of bank indonesia as the payment system authority is to create secure, effective and uninterrupted cash and non - cash payment systems. • one vision of bank indonesia regarding the non - cash payment system is to advocate and promote a less cash society through greater public utilisation of non - cash payment instruments. the realisation of a less cash society is important to nurture a more efficient economy, in addition to fostering good governance in terms of financial management by the public, business players as well as government institutions. • a crucial stepping - stone towards the realisation of a less cash society is that all parties feel secure when performing non - cash transactions, namely feeling protected from the threat of criminal activity by unauthorised parties. a survey conducted by bank indonesia confirmed that security when performing non - cash transactions is the overarching concern of the public, followed by convenience and interoperability amongst the providers of financial transaction services. • in order to combat potential criminality in the payment system and currency exchange industry, more intensive handling of alleged payment system and currency exchange crime is required. furthermore, the imposition of strict sanctions pursuant to prevailing regulations should act as a deterrent to potential criminals. • it is necessary to include tight coordination and cooperation in a clear and transparent mechanism, in accordance with the tasks and authority of bank indonesia and the national police, referring to prevailing laws and regulations with due consideration paid to the principles of justice, utility and legal assurance. • we warmly welcome the signing of these working guidelines concerning the handling of payment system and currency exchange crime, which also represent a part of the memorandum of understanding ( mou ) signed previously. implementation of the working guidelines will be complemented through cooperation between bank indonesia representative offices and local police departments. ladies and gentlemen : • through the working guidelines, we are confident that efforts to handle payment system and currency exchange crime will be more effective moving forward, hence realising the common objective of protecting the public through the creation of a sound and secure

comfort to customers on islamic financial services ; and ( iii ) a shariah audit system. sbp has introduced nine model agreements and contracts for major islamic modes of financing and shariah audit guidelines for banks, after vetting and approval of the sbp shariah board. work is underway on three more model contracts, namely, diminishing musharaka, istijrar and wakalah. shariah compliance inspection of islamic banks will start this year and will cover a review of the islamic banks ’ arrangements and operations, their services and products, financial statements and accounting records to ensure that all transactions are being carried out in accordance with the injunctions of shariah. backed by this elaborate structure, today 6 full fledged islamic banks ( ibs ) and 13 conventional banks offer a network of around 170 branches. total assets of islamic banks are close to rs135 billion 5 while islamic deposits and financings stand at 2. 9 % and 2. 4 % of market share respectively. d. future strategy and outlook while the number and operations of islamic banks are fast expanding, this segment of the market is still small relative to the appetite for islamic finance. pakistan, in light of its past experience, is launching a gradual and steady approach to islamic banking. despite rapid expansion in industry, the share of islamic banking in the total banking system is a modest 3. 2 %. moreover, it only caters for around 23, 000 borrowers through around 170 branches relative to the country - wide 5 million borrowers ( or 4. 8 million excluding microfinance borrowers ) tapped through 7, 700 branches by conventional banks. financing and investment levels of islamic banks barely range around rs77 billion, which is below 3 % of the total banking system ’ s advances 6. on the product side, islamic banks so far offer about 75 % of products currently available in conventional banking while clean lending for consumer financing products, like personal loans and credit cards, still pose a challenge. islamic banks operate exclusively in large cities with some now venturing into secondary cities but they are absent from rural areas where there is great potential for business growth. global interest in islamic finance industry and pakistan ’ s success in laying basic foundation and core infrastructure of islamic financial system lends confidence that the country has further, it has also been specified that a shariah advisor shall not hold any executive / non - executive position in any other financial institution, except working as shariah advisor of islamic mutual