October 07, 2009

There is an urgent need to find an enduring solution to ensure the stability of financial systems, said Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz.She said the challenge was to build a new financial architecture that would allow for more efficient financial intermediation not only within national economies but also across borders.

“Islamic finance, with its emphasis on a strong linkage to productive economic activity, its in-built checks and balances and its high level of disclosure and transparency, offers this prospect.“Indeed, inherent in Islamic finance are the explicit elements that address several of the issues that have surfaced in the conventional financial system during the current crisis,” Zeti said on Monday at a seminar on Islamic Finance: During and After the Global Financial Crisis.