And the European Court of Justice has also put a question mark over the legitimacy of the ECB’s participation in it. For now, that is an opinion of the Advocate General, not a ruling of the Court. And therefore it is too early to be drawing conclusions. And it is also too early to establish what will happen in Greece in this respect. Was the ECB’s decision to start QE, a week ago, correct and timely in your opinion? It was the right decision, also in terms of timing – in the sense that it allowed us to prepare the operation from a technical point of view. We could not simply import the United States’ or United Kingdom’s experience. We needed to design our asset purchases based on our needs, which was also a useful process for gaining the approval of as many governors as possible. But in economic terms? Good timing in this regard, too. There are signs of economic growth returning and the price of oil has fallen, as has the exchange rate of the euro. And now monetary policy is sufficiently expansionary. All of the lights are green: 2015 could see significant growth and our surveys show that banks are passing on the reduction in interest rates to their customers more than they did in the past. Monetary policy is even more effective when it is not leaning against the wind. BIS central bankers’ speeches  1  Even without national reforms?
In Malaysia, our vision of the development of the financial sector over the next ten years is outlined in our Financial Sector Masterplan. The plan includes the strategic direction and strategies for the development of the Islamic financial sector. Finally, greater cooperation among the regulators is necessary in order to ensure that the Islamic financial system is not subject to vulnerabilities and abuses. In this respect, sharing of information among the regulators including across borders is important especially in a more globalised and liberalised environment where financial transactions and activities have become more complex and globalised. In this regard, there is a greater need for regulators to continuously exchange views and share information on key issues and developments faced in their own financial jurisdictions. Another important aspect is in regard to the development of the international Islamic financial market. Although this market is to be driven by the market players, a greater role is expected from the  6  BIS Review 3/2004  regulators and central banks to support its expansion. In this respect, the encouraging support shown by various regulators and central banks in making the launching and issuance of the sovereign sukuk papers a success represents an important progress that has been achieved. These initiatives will bring about a more coordinated effort in achieving market development and stability. VI. Conclusion  Our quest to develop a dynamic Islamic financial system is to achieve the ultimate objective for Islamic finance that contributes significantly toward the overall development of our economies.