I strongly believe that increasing portion of profit-loss sharing transactions, such as mudharabah and musyarakah, will be beneficial for both the financial sector and the real side of the economy and will eliminate decoupling or detachment effect between two sectors, a situation that was behind the recent global financial crisis. Another issue related to product development is about product codification.
Last year, central banks (CBs) dealt with acute and persistent volatility on financial markets and together with their governments tried to address deep economic contraction. This year, CBs of emerging markets (EMs) have been facing new challenges of a multi-speed economic recovery and a simultaneous inflation spike with a high degree of uncertainty.