Not being an expert in Islamic finance, I wish to refer here to a speech made by the Honourable Dr. Zeti Akhtar Aziz a few months ago, when she stated that “There is a need for the Islamic financial system to have the capital requirements, effective risk management and strong governance that are fully equipped to manage the risks that are specific to Islamic financial transactions” 30 .
Such reviews or reports monitor and assess financial vulnerabilities and risks and serve as an early warning mechanism. In addition, the underlying analysis in them provides a basis for recommendations for pre-emptive policy actions. These publications are thus an important means for central banks to contribute to financial stability.