KUALA LUMPUR, May 13 (Bernama) -- Bank Negara Malaysia is calling for action to develop a framework for cross-border financial stability as Islamic finance continues to expand beyond national boundaries, says Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz.
She said increasing internationalisation of Islamic finance has, to a significant extent, been facilitated by the expansion of Islamic financial institution operations beyond domestic borders.
"This trend calls for greater cooperation among supervisors to ensure financial stability of the Islamic financial system," said Zeti at a panel session on "Financial Stability:Regional and Global Cooperation", held during the 8th Islamic Financial Services Board Summit in Luxembourg on Thursday.
The text of her speech was made available to Bernama today.
The Governor also said collaboration among supervisory authorities of such internationally active Islamic financial institutions must become part of the overall supervisory framework.
"These efforts will require regular engagement between home and host supervisors to ensure alignment of the supervisory oversight," Zeti said, adding that it was important for regulators to establish an integrated framework of macro surveillance for Islamic financial activities across jurisdictions.
For that reason, she said it was crucial to develop an integrated surveillance mechanism, identify and prevent emerging risks in the Islamic financial system, as well as, establish an integrated crisis management and resolution framework.
She also stressed the need for important lessons to be learnt from the recent global financial crisis and called on supervisory authorities to exercise greater degree of international cooperation and coordination.
Source: www.bernama.com.my
She said increasing internationalisation of Islamic finance has, to a significant extent, been facilitated by the expansion of Islamic financial institution operations beyond domestic borders.
"This trend calls for greater cooperation among supervisors to ensure financial stability of the Islamic financial system," said Zeti at a panel session on "Financial Stability:Regional and Global Cooperation", held during the 8th Islamic Financial Services Board Summit in Luxembourg on Thursday.
The text of her speech was made available to Bernama today.
The Governor also said collaboration among supervisory authorities of such internationally active Islamic financial institutions must become part of the overall supervisory framework.
"These efforts will require regular engagement between home and host supervisors to ensure alignment of the supervisory oversight," Zeti said, adding that it was important for regulators to establish an integrated framework of macro surveillance for Islamic financial activities across jurisdictions.
For that reason, she said it was crucial to develop an integrated surveillance mechanism, identify and prevent emerging risks in the Islamic financial system, as well as, establish an integrated crisis management and resolution framework.
She also stressed the need for important lessons to be learnt from the recent global financial crisis and called on supervisory authorities to exercise greater degree of international cooperation and coordination.
Source: www.bernama.com.my
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