Through enhanced transparency, a central bank’s obligation to be accountable with regard to policy judgment and the status of achieving the target will become crucial. This will create a situation in which credibility in monetary policy is likely to be enhanced. As it becomes easier to forecast price levels, various economic entities can conduct their activity on the basis of such forecasts.
The sensational growth of the industry in recent years combined with high levels of liquidity has meant that Islamic banks have not needed to fight for funding or ideas. Newer entrants to the industry have merely tended to copy the strategies they see being successfully pursued by their more established rivals.