This is pushing up hurdle rates on investment, swamping the impact of lower policy rates. Reducing uncertainty would turn a vicious cycle – in which falling equilibrium interest rates eat into policy space, exacerbating downside risks and pushing down equilibrium rates further – into a virtuous one, of rising equilibrium rates, increased policy space, and stronger global growth. “The Growing Challenges for Monetary Policy in the current International Monetary and Financial System”, speech by Mark Carney at the Jackson Hole Symposium 2019. 3  6  All speeches are available online at www.bankofengland.co.uk/news/speeches  6  III. Transforming payments During Benoît’s time at the ECB, the public provision of money has faced challenges from Bitcoin to stablecoins. The Bank of England has an open mind but not open door when it comes to such innovations. Unlike social media, for which standards and regulations are only now being developed after the technologies have been adopted by billions of users, the terms of engagement for any new systemic private payments system must be in force well in advance of any launch. And there are a host of issues that still need to be addressed – from maintaining the highest standards of operational resilience and managing financial risks, to addressing privacy and anti-money laundering concerns. Like Benoit, we recognise that these initiatives were not conceived in a vacuum; rather they seek to address long-standing problems in payments.
The international community is now intensifying its efforts to strengthen the international financial system, with the aim to build the foundations for a stronger and more inclusive global economy. In this post-crisis era, the role and relevance of Islamic finance have gained increasing attention. Islamic finance emphasises on achieving socio-economic goals in congruence with the Shariah objectives, thus reinforcing the fundamental disciplines that are essential to preserve financial stability. BIS Review 129/2010  1  Overview of Islamic finance and linkages between Islamic finance and conventional financial system In this last decade, Islamic finance has evolved to become a complete and competitive form of financial intermediation that serves both Muslim and non-Muslims consumers and businesses. The Islamic finance industry is currently worth more than $ trillion and growing at a rate of 15–20 percent annually, with anticipation of further growth to reach $ trillion in the next 3 to 5 years, as more countries around the world seek to further develop Islamic finance within their jurisdictions. Its appeal as a competitive and innovative form of intermediation has led a number of established conventional players to enter the Islamic finance industry, thus widening the diversity of Islamic financial institutions and its product range. Exceptional growth in Islamic finance is registered not solely in the Muslim world, but now spans across the western world and the Asia Pacific region where the growth is driven by commercial and business considerations.