BIS central bankers’ speeches  3  •  In the future, we may not have to remember complex passwords or worry about password compromise. •  Fingerprint, iris, facial and voice recognition, and even palm vein and heartbeat recognition systems are being explored for authentication purposes. •  Biometric ATMs have been deployed in several parts of the world, including the UK, Japan, China, Brazil, and Poland. •  Banks in Singapore have launched mobile applications that utilise the TouchID function of the iPhone for fingerprint authentication. •  Some have also been exploring the use of voice biometrics in their phone banking and call centre services. For users who are concerned about their privacy or have physical challenges, token-based authentication offers an alternative means of security: •  Tokens embedded within mobile devices, or perhaps on wearable technology, are viable options. •  And where stronger security is required, these could be used together with biometrics to provide multi-factor authentication. Third, block chains and distributed ledgers. Digital currencies – like Bitcoins – have attracted much interest. •  Payments using Bitcoins are much faster and potentially cheaper than conventional bank transfers and, its advocates argue, just as safe. •  Whether digital currencies will take off in a big way remains to be seen. •  But it is a phenomenon that many central banks are watching closely, including MAS. •  And if they do take off, one cannot rule out central banks themselves issuing digital currencies some day!
The absence of any particular component could reduce the effectiveness and efficiency and thus affect the viability and sustainability of the system. While the Islamic banking system has an important role in mobilizing deposits and providing financing, the Islamic capital market has an equally important role in providing a stable source of long-term funds for financing large investments and development projects as well as for capital and business expansion. The development of the Islamic capital market not only allows for a more balanced allocation of financial and economic resources within an economy but more importantly, ensures greater diversification of risks within the Islamic financial system. This enhances the resilience and robustness of the Islamic financial system to withstand financial shocks and contributes to the overall stability of the Islamic financial system. BIS Review 47/2004  1  In terms of the development of our Islamic financial system, as at June 2004, the assets mobilized by the Islamic banking sector have increased to RM89.1 billion, accounting for a market share of about 10% of the banking system. At the same time, deposits have also increased to RM64 billion, constituting a market share of 10.4% while financing mobilized amounted to RM54 billion to garner 11% of the market share. Product offerings have also increased in sophistication from the deposit products to hybrid products that are able to enhance returns to depositors. A further advancement was made with the introduction of the Islamic variable rate financing mechanism that provides an alternative to the fixed-rate financing.